Malaysia’s Petronas eyes net-zero emissions by 2050

“We are making this commitment to make a positive change — not only to ride the energy transition — but because a fundamental shift is needed and the organisation wants to be part of the solution, for the world that yearns for a path towards a more sustainable future,” Petronas chief executive Tengku Muhammad Taufik said.

Petronas said it will optimise hydrocarbon efficiency and capture, employ more low-carbon and renewables-based solutions, and advance emission reduction technologies as part of its strategy to achieve its carbon neutrality goal. But it did not give specific details of how this would affect its oil and gas operations. Petronas produces around 1.8mn b/d of oil equivalent (boe/d), is a major LNG exporter and operates about 400,000 b/d of refining capacity.

Petronas follows in the footsteps of European majors such as BP, Total and Shell, which have set similar targets. The Malaysian firm described its 2050 goal as an “aspiration”.

The 2050 target is envisioned on the grounds of sustainability practices that have already been a part of Petronas’ business and decision-making for “more than two decades”, the company said.

Petronas said in mid-October that it is considering exiting the Gharraf oil field in southern Iraq as part of moves to become “cleaner and greener” to align with the expectations of its stakeholders and customers. But the company will also continue to look at opportunities in oil and gas that are accretive, Tengku Taufik said at the time.

Petronas created a third business division — gas and new energy — last year, adding to its focus on cleaner energy sources. Natural gas will be a major part of this, reflecting the company’s position as one of the world’s leading LNG exporters. It is also moving into solar energy, making its first international acquisition, of Singapore-based Amplus Energy Solutions, in April 2019.

The company has already pledged to reduce its greenhouse gas (GHG) emission to 49.5mn t of carbon dioxide equivalent (CO2e) by 2024. It cut GHG emissions by 1.2mn t of CO2e in 2019, capping it at a total of 47.9mn t of CO2e for the year.



Source: Argus Media

November 4, 2020