Malaysia’s national energy company Petronas has announced plans to achieve carbon neutrality by 2050, making it the first state-owned energy company in Asia to set such a target. According to CEO Tengku Muhammad Taufik, the target is part of the company’s intentions to be part of the solution towards a more sustainable future. Petronas said it would expand low-carbon and renewables-based portfolios while improving hydrocarbon efficiency by applying advanced emission reduction technologies.
However, Petronas did not provide further details on how the target would affect its oil and gas operations. Petronas’ upstream production averaged 1.8 million boepd. It is one of the world’s major LNG exporters and has approximately 400,000 bpd of refining capacity. Petronas’ move to achieve net-zero emissions by 2050 follows those of European energy giants such as BP, Total, and Shell.
Last month, Petronas said it was mulling withdrawing from the Gharraf oil field in southern Iraq, in line with stakeholders and customers expectations for the company to be cleaner and greener. However, Taufik said that the company would still look for accretive oil and gas opportunities. Petronas established a gas and new energy division in 2019, focusing on cleaner energy sources. It also vowed to cut its greenhouse gas emission to 49.5 million tons of carbon dioxide equivalent by 2024. Last year, It reduced greenhouse gas emissions by 1.2 million tons of carbon dioxide equivalent to 47.9 million tons.
