PETRONAS: Balancing growth and sustainability key for Asia

The Star

Asia is facing challenges and opportunities as the region continues to grapple with soaring energy demand while urgently needing sustainable solutions, says PETRONAS.  In the speech read out by PETRONAS Gas & Maritime Business executive vice-president and CEO Datuk Adif Zulkifli at the Oil and Gas Asia (OGA) 2025 on Tuesday (Sept 2), president and group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Kamadjaja Aziz stressed the importance of cleaner, secure and affordable energy, underscored natural gas’s role in regional growth, and urged resilience against market volatility, geopolitical shifts and climate change.   WATCH MORE: https://thestartv.com/c/news SUBSCRIBE: https://cutt.ly/TheStar LIKE: https://fb.com/TheStarOnline

Transcript

00:00Ladies and gentlemen, we meet at a moment of both promise and uncertainty around the world.

00:13Energy demand continues to grow.

00:17The latest data from International Energy Agency shows that global energy demand grew by 2% in 2024,

00:25higher than the usual annual average of 1.3% seen between 2013 and 2023.

00:34This growth was led by the power sector.

00:39Demand for electricity rising at 4.3% due to higher demand for cooling,

00:45rising consumption by industry and the growth of data centres.

00:50Despite the growing energy demand, volatility remains the constant in our business.

00:55Markets are shaped by shifting geopolitics, fragile supply chains and the accelerating impact of climate change.

01:04What may look like calm on the surface often hides turbulence beneath.

01:10A single disruption in one region can ripple across global energy markets.

01:14At the same time, extreme weather events remind us that the consequences of climate change are immediate, costly and demand urgent action.

01:27These realities call not for hesitation, but for resilience.

01:32Nowhere is this more urgent than here in Asia.

01:35Today, Asia Pacific is the largest region on the planet, where 60% of the global population, or 4.8 billion, live.

01:47This number is expected to rise to 5.2 billion in 2050.

01:53Alongside its dynamism, Asia is also a region of diversity,

01:58while major cities advance rapidly with digitalisation and new industries.

02:02There are still communities that continue to face challenges in securing reliable and affordable energy.

02:12Case in point, over 350 million people in Asia Pacific have limited access to electricity,

02:20while 150 million have no access at all.

02:24Addressing these gaps is critical if we are to ensure that progress is inclusive and sustainable for all.

02:31Energy demand in this region is rising rapidly.

02:38But renewables are not yet fully amid this growth.

02:43For the possible future, conventional energy sources will continue to play a significant role in the mix.

02:50This is the paradox of Asia.

02:54To sustain our momentum, we need energy that is cleaner, yet also secure and affordable.

03:01At Petronas, we do not see any security and energy transition as competing priorities.

03:09They are interdependent, and one cannot succeed without the other.

03:13This is why we continue to emphasize the enduring role of natural gas.

03:19It provides the stability and flexibility that this region requires,

03:24while at the same time, complementing the growth of renewables.

03:28As this region pursues digitalization, artificial intelligence, and new industries,

03:36gas delivers the reliable baseload power that ensures stability when renewables are not available.

03:45With the application of zero routine flaring and venting, electrification, and carbon capture and storage,

03:51we can decarbonize its use while scaling up renewables.

03:58But achieving resilience requires more than just recognizing the role of oil and gas.

04:04It requires an energy ecosystem that can withstand shocks and adapt to change.

04:11For the OGSE industry gathered here today, this means real opportunities.

04:16From engineering and services that enhance oil and gas infrastructure,

04:21to solutions that reduce emissions, your capabilities are central to building resilience.

04:29The sector's innovation will enable oil and gas to be deployed as a reliable partner to renewables.

04:37Petronas recognizes the importance of a strong OGSE industry,

04:41and we always find ways to increase partnership in strengthening the ecosystem.

04:46Through our vendor development program, and VDPX,

04:51more than 170 SMEs have been nurtured,

04:55with 20 successfully expanding internationally.

04:59Our supplier support program, launched last year,

05:03has already enrolled over 400 vendors to build sustainability capabilities.

05:08Since 2018, our vendor financing program has channeled more than $2.2 billion to suppliers,

05:17with over RM300 in 2024 alone.

05:23For smaller vendors, the special OGSE financing program has provided

05:28$73.4 million to 47 applicants since 2022,

05:35with $31.9 million distributed to 20 applicants last year.

05:43We are equally focused on developing talent and people.

05:46Together with Malaysia Petroleum Resources Corporation and the Malaysian Oil and Gas Energy Services Council,

05:54we are leading the industry talent framework.

05:58The initiative aims to map talent demand and supply in the OGSE sector.

06:05The results will be published this year under the National OGSE Industry Blueprint.

06:09Along this, Petronas is also working with the Human Resources Development Corporation

06:16and the Construction Industry Development Board, CIDB,

06:20through program Latihan Madani,

06:22to upskill and equip local graduates with the skills needed to succeed in the oil and gas sector.

06:28These efforts are guided by a single objective to ensure that the whole supply chain remains strong,

06:39competitive and ready to thrive in the face of growing energy demand and a lower carbon future.

06:46In order to progress and shape tomorrow,

06:50we must foster deeper collaboration across the energy ecosystem,

06:53drive sustainability across the value chain,

06:58strengthen resilience through operational excellence and invest in talent.

07:04As such, this gathering is indeed timely.

07:08Let us use this platform to turn shared ambition into concrete actions

07:12that will strengthen resilience,

07:15accelerate sustainability and shape a stronger future for Asia and beyond.

07:20All right, there you have it, ladies and gentlemen.

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