Petronas, Japan strengthen collaboration to pursue carbon neutrality by 2050


THE national oil and gas company, Petroliam Nasional Bhd (Petronas) has inked a memorandum of cooperation (MoC) with the Ministry of Economy, Trade and Industry of Japan (METI) and a memorandum of understanding (MoU) with Japan Bank for International Cooperation (JBIC) to work together in achieving mutual sustainability goals – carbon neutrality by 2050.

The MoC with METI aims to strengthen Petronas-Japan cooperation in the development and application of energy sources and technology to achieve a realistic energy transition.

Meanwhile, the MoU with JBIC focuses on expanding and strengthening bilateral cooperation between Petronas and Japanese companies in projects undertaken by Petronas around the world in a variety of sectors such as hydrogen and ammonia value chain development, renewable energy, carbon capture and storage, and green mobility.

Both the MoC and MoU are expected to enable investment and funding, as well as improve regional technical collaboration and skills in low-carbon technology.

The partnership was sealed on the sidelines of the Asia Green Growth Partnership Ministerial Meeting in Japan on Sept 26, 2022. 

Petronas president and group CEO Datuk Tengku Muhammad Taufik (picture) signed on behalf of the company, while METI was represented by its Commissioner, Agency for Natural Resources and Energy Hosaka Shin and JBIC was represented by governor Hayashi Nobumitsu.

In a statement in his speech, Tengku Muhammad stated that greater collaboration and engagement, as well as improved access to technology and financing, are crucial in achieving an effective and balanced energy transition.

“Japan has been our trusted and valued partner since the days of our first liquefied natural gas exports in the early 1980s, and this partnership has expanded to include new areas of collaboration in the clean energy space. Petronas is pleased to continue further strengthening our ties through this collaboration with METI and JBIC in pursuing green growth for Asia towards a just energy transition.

“Guided by the National Energy Policy (NEP) and our internal goals, in fulfilling its purpose as a progressive energy and solutions partner, Petronas will continue to pursue synergistic collaborations in support of Malaysia’s energy agenda and the group’s own aspirations for continued growth in this space,” he further added.

The collaboration is seen as a timely initiative given Malaysia’s recent launch of the NEP, which outlines long-term growth objectives for the country to meet its energy needs while transitioning to a low-carbon future.