Petronas Positions Gas At The Core Of Asia's Energy Transition
By Siti Radziah Hamzah
KUALA LUMPUR, Sept 12 (Bernama) -- Petroliam Nasional Bhd (Petronas) is accelerating its transformation under Petronas 2.0, reshaping itself for the next decade and beyond.
By 2035, at 60 years strong, Petronas is an integrated energy company serving the world’s energy and solutions needs and delivering them safely, reliably, and sustainably.
At the core of this journey is natural gas -- a reliable, flexible, and lower-carbon fuel that drives Asia’s economic growth and supports the region’s decarbonisation efforts.
With over four decades of experience and innovation in liquefied natural gas (LNG), Petronas is strengthening its position as a trusted, long-term partner to customers across Asia through an expanding global portfolio.
Anchored in Malaysia, Expanding to Canada
For Petronas, Malaysia remains the backbone of supply, anchored by the Bintulu LNG complex in Sarawak, which has delivered over 16,000 cargoes to more than 25 countries.
Beyond this, Petronas has broken new ground with the world’s first floating LNG (PFLNG) facilities.
PFLNG Satu began operations in 2016 offshore Sabah, followed by PFLNG Dua in 2021, enabling the company to monetise fields once considered stranded.
A third floating facility is already in the pipeline for Sipitang, Sabah, expected to be completed by 2027. These innovations underline Petronas’ ability to push technological boundaries and maintain supply reliability in new ways.
The company is also building for the future with LNG Canada in British Columbia, its new international heartland.
Strategically located on the Pacific Coast, the project provides a direct and efficient shipping route to North Asia, significantly reducing sailing times and transportation costs while lowering exposure to global supply chain risks.
“The direct shipping route shortens sailing time, which in turn lowers transportation costs while reducing exposure to potential supply chain disruptions amid current geopolitical tensions,” said Petronas executive vice president and chief executive officer of gas and maritime business Datuk Adif Zulkifli in an interview recently.
With Phase 1 equity capacity of 3.3 million tonnes per year and potential to double in Phase 2, LNG Canada represents a new supply base that strengthens Petronas’ ability to meet Asia’s rising demand.
Importantly, it is also one of the lowest-emission LNG facilities in the world, with a carbon footprint 60 per cent below the global industry average.
“This positions Petronas to help buyers in North Asia reduce reliance on coal-fired power generation, cutting related emissions in some cases by up to half,” said Adif.
Petronas currently supplies about 10 per cent of the world’s LNG.
“With Malaysia’s facilities and Canada as our newest supply point, we are well-positioned to support Asia’s energy needs for decades to come,” he noted.
For Malaysia, LNG exports remain a major economic driver, contributing about five per cent of the country’s total exports, equivalent to around RM60 billion annually.
The sector creates value chains that span offshore exploration, onshore processing, shipping, and services, generating jobs and economic spillovers across the country.
“As we sustain our LNG exports, this will create a lot of spinoffs and ripple effects across the whole local ecosystem,” said Adif.
Balancing Malaysia’s Energy Needs
At the same time, Petronas is balancing exports with Malaysia’s domestic needs.
To support the country’s growing economy, especially the rising demand in Peninsular Malaysia, Petronas is combining upstream gas developments with LNG imports.
On the import side, Adif pointed out that Peninsular Malaysia’s demand for gas is growing rapidly, driven by the expansion of data centres, the adoption of artificial intelligence technologies and the national policy to phase out coal-fired power generation.
Offshore gas supply in Peninsular Malaysia currently stands at about two billion standard cubic feet per day (BSCF) per day, and the shortfall is made up through LNG imports, he added.
Adif highlighted that these imports are managed via regasification terminals in Pengerang, Johor, and Sungai Udang, Melaka, with supplies sourced from Petronas’ portfolio, mainly from Australia and, in the future, from the Middle East and the United States.
While Petronas is making these advances, more needs to be done to fully harness the role of natural gas in supporting Malaysia’s energy security.
Adif pointed out that this includes liberalising the domestic gas market to encourage greater participation by third-party LNG importers.
At present, regulated gas prices limit competition and discourage new entrants.
Opening the market could increase utilisation of existing infrastructure, bring in multiple suppliers, and ultimately provide a more stable and diversified domestic supply.
Decarbonising the value chain towards the NZCE 2050 target
Central to Petronas’ strategy is its commitment to sustainability. As part of its Net Zero Carbon Emissions 2050 pathway, the company is decarbonising its gas value chain by eliminating routine flaring, introducing energy efficiency measures, and electrifying the Bintulu LNG complex with renewable hydropower.
Petronas is also advancing multiple carbon capture and storage (CCS) projects in Sarawak and Peninsular Malaysia and is strengthening methane management as a signatory to the United Nations’ Oil and Gas Methane Partnership 2.0.
“Gas will remain a critical enabler of Asia’s growth story. With Malaysia’s world-class facilities, new supply points like LNG Canada, and our drive to decarbonise, Petronas is well-positioned to meet Asia’s energy needs for decades to come," Adif said.
Shaping Asia’s Lower-Carbon Growth
Petronas' Energy Transition Strategy drives sustainable growth while positioning the company as a regional leader in Asia’s energy transformation.
With natural gas as a destination fuel, Petronas leverages its inherent advantages, namely stability, scalability, and adaptability, to build a resilient energy infrastructure that meets both current demands and future sustainability goals across the region.
The gas and maritime business is part of this evolution into an energy superstore delivering a full spectrum of solutions from LNG and renewables to future fuels like hydrogen, all underpinned by decades of operational excellence.
-- BERNAMA