Latest news with #TengkuMuhammadTaufikTengkuAziz
The Star
a day ago
- Business
- The Star
PETRONAS should adapt to new energy transition demands amid economic and geopolitical uncertainties
Petroliam Nasional Bhd (PETRONAS) president and group chief executive officer (CEO) Tan Sri Tengku Muhammad Taufik Tengku Aziz speaking at Energy Asia 2025 KUALA LUMPUR: Petroliam Nasional Bhd (PETRONAS) must face new demands in the energy transition era to remain relevant amid current economic uncertainties and geopolitical tensions. Its president and group chief executive officer, Tan Sri Tengku Muhammad Taufik Tengku Aziz, said that in the short term, hydrocarbon production must be cleaner and lower in carbon intensity to reduce greenhouse gas emissions, in addition to addressing methane leaks according to standards. "Firstly, gold certification for oil and gas methane partnership (OGMP) 2.0 is a must. Secondly, we will avoid flaring or routine venting of gas, and so far, more than 20 of our assets have tackled this by practising zero routine flaring. "In the medium to long term, offerings such as carbon capture and storage (CCS) and specialty chemicals should be accelerated as soon as possible, and I believe this requires the right platform, and investments need to be made,' he told Bernama TV in an exclusive interview during the Energy Asia 2025 conference here yesterday. Tengku Muhammad Taufik highlighted that the national oil and gas company must undergo a transformation, where it is no longer optional but a necessity to prepare for a low-carbon energy system. "In the past, we were production-oriented; we produced, and people would buy. Now, we need to understand more; we will only produce what people are willing to buy. "Willing to buy in terms of capability and needs, so if it is just to supply energy in the form of liquefied natural gas (LNG) to traditional markets like Japan, perhaps now it is not enough,' he said. Tengku Muhammad Taufik said PETRONAS is focusing on high-value assets and implementing strategic portfolio optimisation, including increasing or reducing holdings to optimise capital allocation, improve returns, and strengthen focus to support sustainable growth. "Like any other energy player in the sector, optimising the portfolio is a mandatory activity and will always be practised. "If this implementation requires us to sell assets with possibly higher carbon emissions and replace them with new assets that can extend the production life from the upstream sector, we will do that,' he said. For the downstream sector, Tengku Muhammad Taufik said that if the divestment of assets causes margins to be affected, PETRONAS will replace them with assets that have more stable margins and are less exposed to uncertainties. "This is where entities like Gentari come in, profits might be less, but it is less exposed to uncertainties,' he said. Gentari is a clean energy solutions company, wholly owned by PETRONAS. - Bernama
The Star
2 days ago
- Business
- The Star
PETRONAS: Energy demand to rise in Asia-Pacific region amid AI-led industrial shift
Petroliam Nasional Bhd (PETRONAS) president and group chief executive officer (CEO) Tan Sri Tengku Muhammad Taufik Tengku Aziz speaking at Energy Asia 2025 KUALA LUMPUR: Energy demand in ASEAN and the Asia-Pacific region is expected to rise in the coming years, driven by the adoption of artificial intelligence (AI) under the Fifth Industrial Revolution, said Petroliam Nasional Bhd (PETRONAS). The growth in energy demand will also be fuelled by the perpetual hunger for growth, rightful justifiable pursuit of economic development, rapid urbanisation, growing middle income and the demographic within ASEAN and the Asia Pacific, PETRONAS president/group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz said during the closing ceremony of Energy Asia 2025 conference here today. Tengku Muhammad Taufik said strong collaborations and purpose-driven partnerships are essential to navigating the evolving energy landscape. He added that both AI and energy are equally important to improve the energy ecosystem. "Looking at the energy ecosystem, it is indeed a more difficult prospect but probably even more facilitated because of AI. But, we believe AI will greatly and exponentially change energy systems once they are up and running," he added. Meanwhile, a total of 14 memoranda of understanding (MoUs) were signed during the three-day conference, which also featured seven roundtables and 11 launches, and welcomed 13,765 visitors. The Energy Asia 2025 conference, themed Delivering Asia's Energy Transition, attracted over 4,092 delegates. The biennial event will return as Energy Asia 2027, scheduled for June 2 to 7, 2027. - Bernama
The Star
3 days ago
- Business
- The Star
PETRONAS: Calm exterior, but O&G sector remains on guard
Petroliam Nasional Bhd (PETRONAS) president and group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz, speaking at Energy Asia 2025 KUALA LUMPUR: The oil and gas (O&G) industry may appear calm on the surface, but it remains on guard, especially amid the current geopolitical tensions, said Petroliam Nasional Bhd (PETRONAS) president and group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz. "I can't offer conclusive statistics, but based on observed behaviour, many oil and gas leaders here have had to step out every hour to manage operations and address regional exposures. "That does not suggest calm. In fact, it is like a duck gliding across water, calm above, but paddling furiously beneath,' he said in response to a question about the industry's reaction to the conflict in the Middle East during a press conference today. The press conference was held in conjunction with the second day of the three-day Energy Asia Conference 2025. Tengku Muhammad Taufik said PETRONAS is closely monitoring the situation, noting that the national oil company has operations in Iraq and an active presence in the Middle East, with staff deployed in Abu Dhabi and Saudi Arabia. "These are responsibilities that many overlook. Saudi Aramco president and chief executive officer Amin Nasser made this clear in his video message, emphasising that we should never underestimate the importance of maintaining supply availability during times of crisis. Disruptions like these can shock the entire system,' he added. In response to another question, Tengku Muhammad Taufik confirmed that the government has initiated efforts to establish a third regasification terminal (RGT). "While we continue to maintain a strong position in East Malaysia by exporting energy to our long-term partners and supporting their energy security, demand in Peninsular Malaysia is growing rapidly,' he said. According to reports, PETRONAS has been mandated by the government to develop the country's third RGT to ensure energy supply security in Peninsular Malaysia. The new facility, expected to be located in Lumut, Perak, will have a capacity at least comparable to the group's two existing RGTs in Sungai Udang, Melaka, and Pengerang, Johor. - Bernama
The Star
3 days ago
- Business
- The Star
PETRONAS sees energy demand doubling by 2050
KUALA LUMPUR: The global energy system is under severe strain from geopolitical conflicts, climate change and rapid technological shifts, says Petroliam Nasional Bhd (PETRONAS) president and group chief executive officer (CEO) Tan Sri Tengku Muhammad Taufik Tengku Aziz, as he warns of a 'polycrisis' gripping the sector. Speaking at the opening of Energy Asia 2025 yesterday, Tengku Muhammad Taufik said the region's energy demand is set to nearly double by 2050, requiring 'the entire energy ecosystem to come together with synchronised and aligned efforts for a just and equitable transition where no community is left behind.' He said energy security and climate action must not be viewed as competing but 'complementary agendas', adding that the region must urgently scale investments and diversify its energy mix to meet both goals. Recent developments – including the escalation of conflict near the Strait of Hormuz, which channels 20% of global oil supply – have 'sent prices surging in anticipation of a supply shock', he said, warning that volatility is becoming the new norm. 'These seismic shifts of global conflicts, technological revelations and climate change have manifested in what PETRONAS describes as a 'polycrisis',' he added. Tengku Muhammad Taufik noted that energy demand from data centres alone is expected to more than double, from 415 terawatt-hours (TWh) in 2024 to 945TWh globally by 2030 – accounting for over 20% of total demand growth during this period. He said the Asia-Pacific region – home to 4.8 billion people – is projected to account for half of global energy demand by 2050. 'To address Asia's growth ambitions even as it aims to achieve net zero, US$88.7 trillion in energy investment will be needed until 2050,' he said. 'On this note, I would argue that investment and spending across both conventional and renewable energy systems continue to be required.' According to Tengku Muhammad Taufik, while fossil fuels still make up over 80% of the region's energy mix, Asia is well-positioned to scale renewables and decarbonisation efforts through solar, wind, carbon capture, utlisation and storage and cleaner natural gas. He said three things are important. Firstly, diversifying the energy mix. 'Nations must build a more balanced portfolio of both low-emission options and emissions-abated fuels to bolster energy resilience across different economies and use cases.' This means more lower emissions barrels, sustainable aviation fuels and other biofuels, liquefied natural gas sourced from increasingly challenging terrains, lower- or zero-carbon hydrogen, solar and wind energy, carbon capture. 'Secondly, scaling up energy investments. As energy is the lifeblood of economies, investments will be critical to ensure energy availability and affordability.' Lastly, fostering regional collaboration. 'We must all do this together if we are to bring forth our common energy future,' Tengku Muhammad Taufik concluded. Echoing the sentiment, Saudi Aramco president and CEO Amin H Nasser warned that the 'transition plan' had been 'oversold and under-delivered', particularly in Asia. 'We were told it would be rapid, painless and inevitably mean the collapse of conventional energy,' he said. 'Yet oil demand still exceeds 100 million barrels per day with no sign of collapsing.' Nasser argued that 'pragmatism is replacing idealism' and said fossil fuels will remain central in the energy mix, as emissions from these sources are reduced. 'The goal is not to abandon traditional energy; it is to improve it while expanding new solutions at a realistic pace.' At a separate panel discussion, Institute of Strategic and International Studies Malaysia chairman and chief executive Datuk Mohd Faiz Abdullah said cooperation is essential for a successful energy transition, given Asean's economic and technological diversity. He said developing skilled workers, improving financial support for poorer countries and addressing regional imbalances are key challenges for a fair transition. Meanwhile, Organisation of Petroleum Exporting Countries secretary-general Haitham Al Ghais emphasised the importance of continued investment in oil, noting that 'from now to the year 2050, there are requirements for a staggering US$17.4 trillion for the oil industry'. 'We have to transition. We have to move forward. We have to take care of climate change. But it cannot be at the expense of energy security nor energy affordability.'
The Sun
3 days ago
- Business
- The Sun
Calm exterior, but O&G sector remains on guard
KUALA LUMPUR: The oil and gas (O&G) industry may appear calm on the surface, but it remains on guard, especially amid the current geopolitical tensions, said Petroliam Nasional Bhd (Petronas) president and group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz. 'I can't offer conclusive statistics, but based on observed behaviour, many oil and gas leaders here have had to step out every hour to manage operations and address regional exposures. 'That does not suggest calm. In fact, it is like a duck gliding across water, calm above, but paddling furiously beneath,' he said in response to a question about the industry's reaction to the conflict in the Middle East during a press conference today. The press conference was held in conjunction with the second day of the three-day Energy Asia Conference 2025. Tengku Muhammad Taufik said Petronas is closely monitoring the situation, noting that the national oil company has operations in Iraq and an active presence in the Middle East, with staff deployed in Abu Dhabi and Saudi Arabia. 'These are responsibilities that many overlook. Saudi Aramco president and chief executive officer Amin Nasser made this clear in his video message, emphasising that we should never underestimate the importance of maintaining supply availability during times of crisis. Disruptions like these can shock the entire system,' he added. In response to another question, Tengku Muhammad Taufik confirmed that the government has initiated efforts to establish a third regasification terminal (RGT). 'While we continue to maintain a strong position in East Malaysia by exporting energy to our long-term partners and supporting their energy security, demand in Peninsular Malaysia is growing rapidly,' he said. According to reports, Petronas has been mandated by the government to develop the country's third RGT to ensure energy supply security in Peninsular Malaysia. The new facility, expected to be located in Lumut, Perak, will have a capacity at least comparable to the group's two existing RGTs in Sungai Udang, Melaka, and Pengerang, Johor.
