Malaysia’s Petronas aims for net-zero emissions by 2050

Malaysia’s state-owned energy giant Petroliam Nasional Berhad (Petronas) aims to become a net zero emitter of greenhouse gases by 2050, and plans to increase its investments in renewable energy, according to an S&P Global Platts report.

The announcement places Petronas amongst a growing list of global oil firms looking to transform themselves into integrated energy firms as the industry prepares for the energy transition process. BP, Shell and Equinor have also set similar targets, while India’s Reliance Industries has also pledged to become a net carbon-zero firm by 2035.

The burning of oil and gas accounts for the vast majority of the world’s carbon emissions, and many investors have pushed global oil majors to do more to combat climate change.

Petronas, the world’s fourth-largest exporter of LNG, will intensify efforts towards reducing the so-called Scope 1 and Scope 2 greenhouse gas emissions, referring to direct emissions from operations and the electricity used by the company.

"As the world contends with the many challenges brought about by energy transition, Petronas is embracing its role in providing access to affordable, secure and sustainable energy to businesses and society," says president and group CEO, Tengku Muhammad Taufik.

“The group is committed to fulfil its purpose in providing cleaner energy and solutions that benefit both the world we live in as well as the customers we serve through reduced emissions," he adds.

Petronas will continue to intensify its efforts towards reducing emissions from its assets by deploying innovative operations and technologies.

“Together with these efforts, Petronas will also pursue new avenues of revenue creation via investments in nature-based solutions as well as establish greater accessibility to cleaner energy solutions,” adds Taufik.

Petronas is a significant source of revenue for Malaysia’s federal government as it is the sole custodian of the country’s oil and gas reserves and produces petrochemicals. It is also engaged in exploration and production activities overseas.

In 2019, the company acquired a Singapore-based solar energy company as part of its push towards renewable energy.

Earlier this year, Petronas said that it was looking to expand its renewable energy portfolio after posting its first quarterly loss in nearly five years following a coronavirus-related demand slump and lower oil prices.