Petronas Malaysia allocates 20% of its capital expenditure to decarbonization

TEMPO.CO, Nusa Dua – President and Group CEO Petronas Datuk Tengku Muhammad Taufik said the Malaysian oil and gas company has allocated 20% of its capital expenditure (Capex) to decarbonization. It is the company’s effort to support green energy.

“Now our goal is to become a partner in energetic and progressive solutions that enrich lives for a sustainable future,” Teuku said. B20 Summit in Nusa Dua, Bali, Sunday November 13, 2022.

Petronas supports the agreement of countries around the world to encourage net zero emissions (NZE) or zero carbon emissions. The NZE must be reached in 2050.

As an oil and gas company, Teuku admits that Petronas’ commitment and responsibility in promoting the energy transition is often questioned. However, this company, established in 1974, also finds that, on the other hand, fossil energy resources are continually being depleted.

“We find ourselves in a situation where, as an oil and gas company, we are dealing with depleted resources,” he said.

Although it has focused on helping to deliver clean and affordable energy solutions, Petronas finds that the world does not have a system that is fully ready for this energy transition. Moreover, currently energy is still very heavily subsidized.

Therefore, he said, the issue of energy transition is a shared responsibility. “We are all part of a larger issue to meet the energy needs of a world that wants to develop,” Teuku said.

During the previous session of the B20 Summit, the Minister of Energy and Natural Resources (ESDM) Arifin Tasrif said the energy transition requires $131 trillion globally. According to him, this huge budget could have been achieved if the countries set up joint initiatives.

“To achieve this goal, we cannot work alone,” Arifin said.

Arifin said G20 member countries had agreed on the NZE target based on the growing risk of a climate crisis. The NZE target could be exceeded if there is financial and technological support.


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Vince Corbyn

"Tvaholic. Beer guru. Lifelong internet nerd. Infuriatingly humble pop culture scholar. Friendly food advocate. Freelance alcohol fan. Incurable bacon ninja."

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