Petronas to set up new independent RE entity
The entity aims to solve the clean energy needs of their customers and support the group’s global aspirations
PETROLIAM Nasional Bhd (Petronas) will set up a new independent entity focusing entirely on renewable energy (RE), hydrogen and green mobility by the middle of this year.
Its president and group CEO Datuk Tengku Muhammad Taufik Tengku Aziz said the entity is aimed to solve the clean energy needs of their customers and support the group’s global aspirations.
Apart from that, he said, the national energy firm will also set up a carbon management unit, which is a centralised unit under its upstream business to accelerate decarbonisation efforts across the group.
“We will set up a new independent entity that will focus entirely on three sectors namely RE, hydrogen and green mobility. This entity will be set up in the middle of this year.
“We are also setting up a carbon management unit to manage the carbon storage portfolio for emissions from our operations and to establish a regional carbon storage hub as a new revenue generator,” he said during the group’s financial result announcement and media briefing in Kuala Lumpur yesterday.
Meanwhile, Tengku Muhammad Taufik said the firm has planned to invest between RM40 billion to RM50 billion in capital expenditure (capex) this year supported by higher oil prices.
He added that the capex allocated is the same as before the Covid-19 pandemic, however, higher than the one in 2020 and 2021.
“This year’s capex will be allocated equally between the group’s domestic and international operations.
“Last year, the group spent a lower capex of RM30.5 billion due to movement restrictions caused by the Covid-19 pandemic. This made many of the group’s operations not able to function as normal which resulted in the lower distribution of capex.
“Nevertheless, based on the increase in oil prices, our capex guidance indicates that it will return to levels between RM40 billion to RM50 billion,” he explained.
Commenting on the global oil and gas (O&G) industry, Tengku Muhammad Taufik said the industry as a whole has been “quite slow” in taking up gas investments over the last decade and therefore, the market could see shortages in the next few years.
He noted that Petronas views the situation as the transition energy source to “fuel the recovery post-Covid-19” even after the recent hike in prices in Europe and other key markets.
“In the next two to three years, we expect to see 25-28 million tonnes per annum short of liquefied natural gas (LNG