Petronas calls for energy transition collaboration

Malaysian energy giant Petronas has called for a stronger collaboration amongst Southeast Asian countries to support the global energy transition.

Petronas called on ASEAN governments and energy players to collectively leverage on each other’s strengths in this quest.

To date, ASEAN member countries have collectively endorsed ambitious targets. These targets seek to improve the rate of energy efficiency improvement, limit emissions from fossil fuels. They also expand the role of renewables, especially in the power sector.

During a virtual event, Petronas president and group CEO Tengku Muhammad Taufik, said, “While the region has made a start towards carbon-neutral energy pathways, there remain further opportunities to strengthen regional cooperation and create the right eco-system to promote wider usage of energy from clean and sustainable sources, particularly solar and wind. The shift towards a low-carbon future will require coordinated and collective action from all stakeholders.”

Taufik added that government support and intervention in developing and implementing supportive energy policies and regulations are pivotal.

He further noted that public-private sector collaboration will help attract technology-based Foreign Direct Investments. It will also bring in technology proprietorships and solutions providers.

Petronas’ president also pointed out that it is important to address the energy trilemma of security, sustainability and affordability.

“The ASEAN energy transition in the context of the energy trilemma is moving at a different pace as the region is mostly made up of developing economies with competing national economic and social agenda. Even though energy security remains the top priority for ASEAN, its economies need to strike the right balance between energy affordability and energy security”, he said.

Natural gas remains core to Petronas as a cleaner source of fossil fuel. It offers a suitable solution for ensuring the energy needs of Southeast Asia’s burgeoning population. Petronas is also seeing opportunities in new energy sources that will complement its global LNG portfolio. Apart from solar and wind, this also includes hydrogen. The company is now working with technology providers to develop zero-emission hydrogen fuel from bio-based products and carbon engineering.

More recently, Petronas committed to achieving net-zero carbon emissions by 2050.