Tengku Muhammad Taufik, President & Group CEO, Petronas
The energy market of Asia is in the process of growth stimulated by the increase in the level of industrialization, urbanization, and population growth. There is a rise in energy demand in the Asian countries such as China, India, and countries in South East Asia which is compelling the providers to provide economical, reliable and sustainable energy. The extensive use of coal and oil as the main sources of energy hinders the realization of carbon reduction goals while unstable global fuel prices exert economic pressure. Moreover, the disparities of energy infrastructure from one country to the other make it challenging to upgrade and embrace new renewable energy sources. As customers, industries and governments face the challenge of achieving growth for their economies while being conscious of the environmental implications, and at the same time ensure that adequate energy supplies can be made available to support development.
PETRONAS, an oil and gas company in Malaysia, has been actively involved in meeting the energy needs of the region. Being one of the largest oil companies operating in Asia with operations in various countries, it continues to play an important role of meeting the needs of the region’s increasing demand for energy while also considering the sustainable development goals. With its global strategy in energy transition, the firm has established a strategic direction on the cleaner energy and production efficiency to serve its customers in Asia.
In line with the environmental sustainability challenges of the region, PETRONAS has embraced the Net Zero Carbon Emissions (NZCE) by 2050 as the company’s strategic goal. The company’s measures are focused on decreasing carbon dioxide emission through generation of clean power, increasing organizational efficiency, and increasing the share of renewable power sources. It also understands that Asia’s energy market presents certain challenges, including energy availability and affordability problems in the developing countries as well as the use of coal for electricity generation. The company’s initiatives are in line with the efforts to have cleaner and sustainable energy system in Asia.
Sustainability Initiatives in Asia
PETRONAS has come a long way in sustainability as it seeks to transform Asia into a centre of renewable energy. The company has undertaken investments in carbon capture and storage (CCS) technology which is crucial to lowering the carbon footprint of oil and gas business. In the context of CCS, it is gradually involved in the countries like Malaysia to bring in the CCS projects that assist in capturing the carbon emissions from industrial processes and store them under the ground in order to support de-carbonization of the region.
PETRONAS also has a focus on minimizing methane emissions especially in natural gas as methane is a powerful greenhouse gas. Through efficiency on energy, embracing of cleaner technologies, it is on the right path to achieve regional and global sustainability. This is especially the case in Asia where most countries still depend on fossil fuel and it is crucial to find ways of lowering emissions to meet green goals.
Driving Innovation for Asia's Energy Future
The energy market in Asia is highly competitive and innovation is central to solving Asia’s problems. PETRONAS seeks to improve technologies to increase efficiency and decrease emissions in producing energy sustainably. Its unique approach promotes the engagement of new partners and innovative solution providers that may contribute to the development of new solutions that can help to address the energy demand in Asia.
Regarding the renewable resources, PETRONAS has invested a lot in the solar energy since the company understands the great opportunities of the solar energy in Asian region. Currently, the company has launched partnerships in the solar energy sector in different countries to invest in the large scale solar projects, promoting the use of renewable energy in the regions. Another area that it is looking at is hydrogen energy, which is considered one of the future fuels that will be key in the process of Asia’s energy transition.
Regional Partnerships and Expansion in Asia
The global expansion is central to PETRONAS’s growth strategy as is evident through the various strategic partnerships that the company has made across Asia. To acquire new sources of energy and to advance the sustainable solutions, the company has entered into strategic partnerships with other energy companies, governments, and technology partners across the region. These partnerships have helped it access the rapidly growing energy markets in Southeast Asia, India and China, thus diversify its renewable energy business and further its sustainability strategy.
In Southeast Asia, PETRONAS has engaged itself in the provision of energy to the people who lack access to it, as well as in supporting rural electrification. These are important for mitigating energy disparity in the region as many rural areas to this date do not have steady power supply. Through the provision of economical and renewable energy sources, it is playing a role in the closure of the energy deficit in Asia as it boosts the region’s economy.
Operational Excellence and Efficiency in Asia
Competitiveness is one of the hallmarks for any organization and operational excellence is at the core of PETRONAS’s competitiveness in the demanding Asia energy market. The management of the company has been able to adopt the best practices to make the company operations efficient, economical and environmentally friendly. This has enabled the firm to increase its production efficiency and minimize pollution throughout its facilities in Asia.
With the help of automation and digitalization, PETRONAS has improved the dependability of the energy supply chains and decreased costs, while minimizing the adverse impacts on the environment. These operational efficiencies are important especially in Asia because of the volatility of the oil prices and the market that affects the energy cost. By keeping up with operational efficiency, it is able to set reasonable prices while at the same time catering to the increasing energy needs of the region.
Supporting Asia's Energy Transition
Owing to the increasing pressure resulting from global change in energy consumption and production, PETRONAS has taken an active role in contributing towards the energy change in Asia. The company has long-term strategic positions in solar and wind power generation along with the emergence of hydrogen as an important element of Asia’s decarbonization strategy. The role that the firm has adopted with regard to renewable energy is especially significant to Asia, where many nations are striving to meet increasing energy demand, and at the same time cutting down their carbon emission levels.
In addition to renewable energy, PETRONAS is also expanding the use of cleaner fuels such as natural gas as the transitional energy source for Asia. Natural gas is less carbon intensive as compared to coal and oil thus it plays a critical role in the decarbonization of Asia. For instance, PETRONAS has ramped up its LNG capabilities in the region thereby assisting other countries that are keen on moving away from the use of coal.
Social Responsibility and Community Impact
PETRONAS has been involved in activities that seek to enhance the well-being of society in Asian region in relation to social responsibility. The company aims at supporting the needy areas by providing them with social necessities including education, healthcare and clean water. These efforts are mainly implemented by its foundation which is involved in funding initiatives that seek to enhance the quality of life in the targeted areas as well as embrace sustainable development.
Besides addressing the community concerns, PETRONAS has also strived to address the energy conservation and environmental awareness campaigns. By means of its educational programs and campaigns, the company has contributed to the development of sustainable energy consumption and the minimization of negative impact of energy consumption on the environment in Asia.
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