Petronas will transform into energy "supermarket"
Malaysia's national oil and gas company, Petronas, plans to launch a new clean energy transition organization this year, as well as a carbon management unit, but both in parallel with expanding its traditional hydrocarbon business.
On Tuesday, Petronas unveiled ambitious plans to create a new independent entity fully focused on cleaner energy solutions that will leverage transition opportunities alongside its core portfolio.
This new organization, which will be launched "somewhere in the middle of the year" and has not yet received an official name, will have three main proposals: renewable energy, hydrogen and green mobility.
“Our goal for this organization is to ultimately become uncompromisingly free to meet customer needs for clean energy solutions and support the overall global drive for a lower carbon future,” said Petronas CEO Tengku Muhammad Tawfik.
Petronas is also building a centralized carbon management unit that will focus on accelerating the company's decarbonization efforts across its integrated value chain.
“With the launch of our new facility in mid-2022 and the establishment of our carbon management division, Petronas is envisioned to become an energy ‘supermarket’ that will provide customers with a suite of energy and solutions that keep businesses running and fuel progress in an equitable and sustainable manner.” Taufik said.
"Petronas must take bold and decisive action now or risk missing out on this very narrow window of opportunity for a successful transition to an energy transition."
However, he emphasized that oil, natural gas and liquefied natural gas will remain key pillars of the company's future activities.
“I want to emphasize that Petronas is not phasing out hydrocarbons, even as we are undertaking a phased transition to integrating more renewable energy and low carbon solutions.”
The study will explore the concept of methanation by reacting green hydrogen derived from renewable energy sources with carbon dioxide. Through this process, CO 2 emissions from the combustion of carbon-neutral methane will be offset by the emission or capture of CO 2 during production, Petronas notes.
The company continues to expand its traditional hydrocarbon operations at home and abroad.
Petroliam Nasional Berhad's oil production division, Petronas Charigali (Turkmenistan) SDN BHD (PC(T)SB), has been operating in Turkmenistan since 1996 and is the operator of Block 1 with a 100% interest. With the commencement of commercial production of crude oil in 2009 from the Diyarbekir field and natural gas production from the Makhtumkuli field in 2011, PC(T)SB has established itself as one of the largest oil and gas producers and suppliers of natural gas in Turkmenistan.
In 2021, Petronas Charigali celebrated the 25th anniversary of successful partnership with Turkmenistan.
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