Latest news with #intra-ASEAN
Focus Malaysia
06-06-2025
- Business
- Focus Malaysia
ASEAN energy sector stays resilient amid global headwinds
IN ASEAN, upstream remain resilient, buoyed by regional collaboration and co-investment in local and international assets. Towards the local front, the initiatives on carbon capture and joint development areas continue to grow. To reiterate from Petronas Activity Outlook 2025-2027, 73 development wells are expected to be drilled in 2025 with an estimated RM50 mil capital expenditure (capex) allocated for brownfield and greenfield developments. For the sake of energy security, Petronas also expanded its footprint in Suriname, Angola, Brazil, UAE and Oman, while holding 15% stake in Indonesia's Masela LNG project. This signals that upstream would remain a long-term powerhouse, despite the convoluted environment in the oil market. Likewise, LNG saw temporary interferences from maintenance works on LNG terminals, as well as certain LNGCs being adrift due to saturated LNGCs at sea. 'However, in our local front, investments in gas pipelines and LNG regasification terminals continue to support the division,' said MIDF Research (MIDF). Additionally, MIDF noted that carbon transportation had seen a slight uptake in May 2025, with growing investments in CO2 pipeline networks and capture hubs in Canada and Europe. In ASEAN, transboundary carbon transport and storage had also seen a higher prioritisation post-ASEAN summit, which includes the development of a regional carbon market and blending of infrastructure for renewable gas and hydrogen. During this summit, Petronas, ADNOC and Storegga had signed a joint agreement to develop a CCS site in the Penyu Basin, targeting 5mT of CO2 per year by CY30. In May 2025, the tanker market saw volatility due to the weakening oil demand and shifting trade flows, prompting lesser utilisation for tankers. However, long term charters saw a stable rate, supported by: (i) regional demand for refined petroleum products. (ii) ongoing intra-ASEAN trades and trades with China and India. (iii) sustainable shipping solutions such as dual-fuel tankers and green corridors. Additionally, as of May 2025, the Mediterranean Sea was designated as an emission control area (ECA) which will require tankers to use low-sulphur fuel (0.1%). While this may lead to increasing bunker cost for traders in the long run, marine companies could leverage on the ECAs from retrofits and EPCC contracts. Malaysia had also shown interest in expanding ECA-compliant fuel availability, as part of its green shipping and sustainable fuel efforts. Global refining margins had reached a 12-month high in late Apr 2025, and had remain strong in May, driven by: (i) lower crude prices. (ii) strong demand for refined products in non-OECD countries. (iii) inventory build rising (>60mbl) in crude stocks. (iv) minimal disruptions in refineries. (v) energy efficiency and cost optimisation initiatives in refineries. Refineries in Europe and North America had accelerated fuel-switching and hydrogen integration and increased investments in biofuels to meet tightening emissions regulations. Likewise, ASEAN countries continue to modernise refining assets to meet clean fuel standards and carbon intensity targets, with emphasis on energy efficiency, carbon credit mechanism and renewables integration. 'In our local front, the downstream sector remained stable on retail fuels but was downcast by the bearish petrochemical subsector,' said MIDF. While downstream would benefit on the cheaper import of crude oil for refineries, the downside risks remain on a broader picture, including weaker MYR against USD impacting feedstocks and crude purchasing, and higher competition with China and other ASEAN countries for petrochemicals. While Petronas continue its aggressive E&P activities in the upstream despite the lower crude oil prices, midstream and downstream divisions are expected to turn towards sustainability and green energy solutions and integrating them into its operations. In the ASEAN summit concluded in the end of May 2025, LNG and CCS transportation and logistics were put forth as strategic priorities within the region. More focus was set on renewable energy and hydrogen projects to be integrated with the conventional oil and gas developments, providing a balanced and sound energy transition as highlighted in Malaysia's National Energy Transition Roadmap (NETR). Regional cooperation is likely to expand through energy security, carbon credit management, ECA compliance and CCS solutions. 'In addition, we opine that domestic demand and robust LNG exports will continue to locally support the sector,' said MIDF. Overall, MIDF retains their neutral view on the oil and gas sector. The sector continues to face challenges, primarily from oil price volatility, driven by output hikes from OPEC+ and non-OPEC producers, and sluggish global demand due to tariff-related uncertainties. The possibility of the lifting of sanctions from Iran also added into the unfavourable outlook on the oil price movement. The mixed results in quarter one 2025 alongside more cautious capital spending, have further clouded the short-term global outlook. 'However, in our regional and local front, decarbonization and green energy projects are expected to put a floor on the downtrends in the sector, as the US trade tariffs are anticipated to encourage more intra-ASEAN and ASEAN-China collaborations in the sector,' said MIDF. Nevertheless, downside risks remain on upcoming scheduled maintenance activities, lower production output, regulatory changes, and escalating cost pressures from increased feedstock and raw materials costs. —June 6, 2025 Main image: Vidya
The Sun
28-05-2025
- Business
- The Sun
ASEAN leaders concerned by US tariffs, eye dialogue
KUALA LUMPUR: ASEAN leaders have voiced deep concern over the United States' (US) recent move to impose unilateral sweeping tariffs, during the 46th ASEAN Summit. According to the Chairman's statement issued following the conclusion of the summit on Tuesday, the leaders had affirmed that they will continue to engage the US in a frank and constructive dialogue on the matter and commit not to impose any retaliatory measures in response to US tariffs. 'We express deep concern over the recent announcement by the US to impose unilateral tariffs and their potential impact on our economies. 'The uncertainties arising from these tariffs and potential retaliation could heighten volatility in both capital flows and exchange rates,' the statement read. ASEAN leaders reaffirmed the bloc's commitment towards regional unity, economic stability and practical cooperation in navigating external challenges, it said. They also reaffirm commitment to strengthen financial resilience and accelerate financial integration within ASEAN, thus supporting greater intra-ASEAN trade and Investment integration, amid rising global trade tensions. 'We remained committed to ASEAN as a reliable economic partner and will work to foster a strengthened economic cooperation framework with the US, particularly in high-value and future-oriented sectors,' the statement read. They also pledged to strengthen and expand economic links with ASEAN's external partners, including with Dialogue Partners, and to seek out opportunities for cooperation with new partners. The ASEAN Summit, which drew leaders and high-level delegations from ASEAN and partner countries, was held under Malaysia's 2025 ASEAN Chairmanship theme 'Inclusivity and Sustainability'. This year marks Malaysia's fifth term as ASEAN Chair, following previous chairmanships in 1977, 1997, 2005 and 2015.
The Sun
28-05-2025
- Business
- The Sun
ASEAN voices deep concern over US tariffs, commits to regional economic unity
KUALA LUMPUR: ASEAN leaders have voiced deep concern over the United States' (US) recent move to impose unilateral sweeping tariffs, during the 46th ASEAN Summit. According to the Chairman's statement issued following the conclusion of the summit on Tuesday, the leaders had affirmed that they will continue to engage the US in a frank and constructive dialogue on the matter and commit not to impose any retaliatory measures in response to US tariffs. 'We express deep concern over the recent announcement by the US to impose unilateral tariffs and their potential impact on our economies. 'The uncertainties arising from these tariffs and potential retaliation could heighten volatility in both capital flows and exchange rates,' the statement read. ASEAN leaders reaffirmed the bloc's commitment towards regional unity, economic stability and practical cooperation in navigating external challenges, it said. They also reaffirm commitment to strengthen financial resilience and accelerate financial integration within ASEAN, thus supporting greater intra-ASEAN trade and Investment integration, amid rising global trade tensions. 'We remained committed to ASEAN as a reliable economic partner and will work to foster a strengthened economic cooperation framework with the US, particularly in high-value and future-oriented sectors,' the statement read. They also pledged to strengthen and expand economic links with ASEAN's external partners, including with Dialogue Partners, and to seek out opportunities for cooperation with new partners. The ASEAN Summit, which drew leaders and high-level delegations from ASEAN and partner countries, was held under Malaysia's 2025 ASEAN Chairmanship theme 'Inclusivity and Sustainability'. This year marks Malaysia's fifth term as ASEAN Chair, following previous chairmanships in 1977, 1997, 2005 and 2015.
The Sun
28-05-2025
- Business
- The Sun
Member states agree to strengthen ASEAN centrality
KUALA LUMPUR: ASEAN member states agreed to strengthen the regional bloc's centrality by promoting strategic trust among nations through dialogues, diplomacy and goodwill. According to the chairman's statement issued today following the conclusion of the 46th ASEAN Summit, they also emphasised the importance of further enhancing the bloc's external relations and expanding its mutually beneficial partnerships in the region and beyond. 'We reaffirmed the importance of ASEAN's centrality and unity in shaping a peaceful, stable and inclusive regional architecture. 'We stressed the need to strengthen strategic trust and mutual confidence among ASEAN member states and external partners through dialogue, diplomacy and adherence to international laws, while deepening ASEAN's external engagements through mutually beneficial partnerships,' the statement read. The statement noted that ASEAN leaders underscored the importance of deeper economic integration and intra-ASEAN trade and investment flows, with a focus on inclusive, resilient and sustainable growth. In this regard, they agreed to advance cooperation in areas such as green finance, sustainable investment, digital transformation and supply chain connectivity, to ensure ASEAN's competitiveness in a rapidly evolving global economy. Held under the theme 'Inclusivity and Sustainability', this year's summit marks Malaysia's fifth time chairing ASEAN, following its leadership in 1977, 1997, 2005 and 2015. In conjunction with the summit, two major engagements — the 2nd ASEAN-Gulf Cooperation Council (GCC) Summit and the inaugural ASEAN-GCC-China Summit — will be held to further strengthen ASEAN's strategic inter-regional partnerships.
Barnama
27-05-2025
- Business
- Barnama
ASEAN Voices Deep Concern Over US Tariffs, Commits To Regional Economic Unity
GENERAL KUALA LUMPUR, May 27 (Bernama) -- ASEAN leaders have voiced deep concern over the United States' (US) recent move to impose unilateral sweeping tariffs, during the 46th ASEAN Summit. According to the Chairman's statement issued following the conclusion of the summit on Tuesday, the leaders had affirmed that they will continue to engage the US in a frank and constructive dialogue on the matter and commit not to impose any retaliatory measures in response to US tariffs. 'We express deep concern over the recent announcement by the US to impose unilateral tariffs and their potential impact on our economies. 'The uncertainties arising from these tariffs and potential retaliation could heighten volatility in both capital flows and exchange rates,' the statement read. ASEAN leaders reaffirmed the bloc's commitment towards regional unity, economic stability and practical cooperation in navigating external challenges, it said. They also reaffirm commitment to strengthen financial resilience and accelerate financial integration within ASEAN, thus supporting greater intra-ASEAN trade and Investment integration, amid rising global trade tensions. 'We remained committed to ASEAN as a reliable economic partner and will work to foster a strengthened economic cooperation framework with the US, particularly in high-value and future-oriented sectors,' the statement read. They also pledged to strengthen and expand economic links with ASEAN's external partners, including with Dialogue Partners, and to seek out opportunities for cooperation with new partners. The ASEAN Summit, which drew leaders and high-level delegations from ASEAN and partner countries, was held under Malaysia's 2025 ASEAN Chairmanship theme 'Inclusivity and Sustainability'.
