Petronas calls on Asean govts to support global energy transition

Govt intervention in developing and implementing supportive energy policies and business-friendly regulations is pivotal for businesses to survive

by S BIRRUNTHA / pic by BERNAMA (picture)

PETROLIAM Nasional Bhd (Petronas) has called for Asean governments, energy players, as well as the public and private sectors to collaborate and collectively leverage each other’s strengths in achieving a sustainable, low-carbon future.

It said to date, Asean member countries have collectively endorsed ambitious targets that seek to improve the rate of energy efficiency, limit emissions from fossil fuels and expand the role of renewables especially in the power sector, which shows positive signs that the region is moving in the right direction.

Petronas president and group CEO Tengku Muhammad Taufik Tengku Aziz 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 ecosystem to promote a 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,” he said in a special address titled “South-East Asia Energy Outlook in a Global Context” at the opening of the virtual Asean Energy Business Forum 2020 on Wednesday.

He added that government support and intervention in developing and implementing supportive energy policies and business-friendly regulations are pivotal for businesses to survive.

Meanwhile, public-private sector collaboration will help attract technology-based foreign direct investments, as well as technology proprietorships and solutions providers.

Additionally, Tengku Muhammad Taufik 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. In this regard, Petronas is committed to continuously delivering energy while balancing the energy trilemma,” he noted.

He added that natural gas remains core to Petronas as a cleaner source of fossil fuel, offering a suitable solution towards ensuring the energy needs of South-East Asia’s burgeoning population.

He also said, apart from solar and wind, the group is seeing opportunities in new energy sources that will complement its global liquefied natural gas portfolio, and this includes hydrogen, in which it is now working towards sustainable coalitions with technology providers to develop zero-emission hydrogen fuel from bio-based products and carbon engineering.

Previously, Petronas announced its aspiration to achieve Net Zero Carbon Emissions by 2050 as part of its holistic approach to sustainability that balances environment, social and governance considerations.

It is aligned to the group’s statement of purpose, namely to be a “progressive energy and solutions partner enriching lives for a sustainable future”.