Calls for climate actions have been getting steadily louder globally of late with more countries around the world implementing net-zero targets and carbon pricing initiatives.

Since Bhutan became the first nation in the world to announce its net-zero target back in 2015, now there are more than 50 countries pledging the same. While each country’s metrics differ, they all encompass common plans such as cutting down on GHG emissions, transitioning from coal and fossil fuels.

And currently there are more than 60 carbon pricing initiatives currently in force across the globe on various regional, national, and subnational levels, with more scheduled for implementation, according to The World Bank.

Accelerated by the prolonged uncertainty of the COVID-19 pandemic where energy demand and prices continue to be volatile, the energy transition is proving to be an extremely turbulent period for the energy industry.

As a leading energy player in Asia, PETRONAS is determined to tackle this challenge with sustainable actions that are just and responsible. At CERAWeek 2022 held from 7-11 March in Houston, Texas, President & Group Chief Executive Officer Datuk Tengku Muhammad Taufik, addressing the lack of investments that led to shortages of supply, said energy players are not the villains but the solution.

PETRONAS advocates gas as the energy of transition. With 70% of its portfolio in gas, PETRONAS is focusing on bringing forth more molecules to create greater access to gas and LNG as a lower-carbon option.

Gas makes the ideal fuel of choice for the energy transition, emitting 40% to 50% less CO₂ than coal. It helps cut down emissions effectively. In terms of providing energy accessibility and security, gas is an abundant source and it will still be relevant in the coming decades as more and more modern technologies are emerging to develop and monetise gas in safer and more responsible ways.

PETRONAS’ Chief Operating Officer & Executive Vice President & CEO Gas Business Adnan Zainal Abidin emphasises the role of gas in ensuring a smooth energy transition and its place in the future energy needs. “It has been proven to be affordable and is the cleanest fossil fuel. In the future, we foresee the industry can further reduce its CO₂ and GHG emissions from gas combustion.”

In moving forward to cut down GHG emissions, the world faces the energy tri-lemma of security, affordability and sustainability. Investing in new forms of energy then should not be at the expense of the existing systems that millions of people are currently depending on for their sources of energy. Charlotte Wolff-Bye, PETRONAS’ Chief Sustainability Officer, pointed out that there are still about 800 million people who are without access to energy. “They are deprived of modern lifestyles and prospects for the future. We obviously need to de-couple energy from emissions but also make sure that as we transition, we leave nobody behind.” She added that there should be great transferable opportunities for those working within the current system, in the low-carbon future.

While PETRONAS is addressing the energy transition with differentiated gas offerings, at the same time it is also intensifying its decarbonisation efforts where it has set up a centralised carbon management unit which will focus on managing emissions across its entire integrated value chain. Apart from that, the company recently announced the establishment of an independent entity for clean energy solutions that will focus on renewables, hydrogen, and green mobility. PETRONAS also has plans to move into becoming a superstore of energy, offering emissions abated, safe and affordable energy.

At the same time, PETRONAS is unlocking novel solutions via new innovations. With its engineering expertise and industry-wide collaborations, it aims to accelerate the time to scale up while reducing costs. PETRONAS’ Agora House at CERAWeek 2022 showcased PETRONAS’ multiple pathways of just and responsible energy solutions where it opened doors for potential start-up investments, possible partnerships for its renewables and hydrogen efforts as well as demonstrating its futuristic solutions such as the ANYmal, an autonomous four-legged robot designed for inspection and manipulation tasks at oil and gas platforms.

Innovation at PETRONAS is realised through initiatives such as the PETRONAS Innovation Engine, VIBE Venture Builder, Citizen Analytics programme, Digital Academy, and SEEd.Lab, to name a few. As for partnerships, PETRONAS looks at industry peers and technology partners by tapping into their network’s digital innovation – to share investments and risks.

PETRONAS’ Chief Digital Officer Aadrin Azly spoke of how PETRONAS also looks beyond the industry to support its core oil and gas business for further growth. “We are also working with start-ups with the setting up of Corporate Venture Capital and also through PIVA based in the Silicon Valley to solve critical problems in the industrial and energy space through breakthrough technology and innovative business models.”

Further along the value chain, at PETRONAS’ Downstream business, energy transition efforts are focused on innovations to not only improve operational excellence at existing assets but also in offering cleaner solutions to reduce carbon footprint.

PETRONAS’ Executive Vice President & Chief Executive Officer of Downstream, Datuk Sazali Hamzah highlights the importance in balancing the two approaches for a greater impact on overall carbon emissions reduction. “At our petrochemicals arm, we applied the latest catalyst technology to our olefin production which has successfully reduced emissions by up to 30%. We are also looking into collaborations with customers to jointly explore the potential of next-generation solutions such as using methanol as an alternative and cleaner vessel fuel. With that, PETRONAS will not only be able to enhance our suite of sustainable solutions in line with our net-zero target, but also support our customers’ sustainable goals by reducing their Scope 1 and 2 emissions.”

The world is currently dealing with the consequences of the lack of energy investment during the second half of the last decade as a reaction to a crash in energy prices. The growing energy demand and global incentives to reduce carbon emissions are impacting energy investment, strategy, geopolitics, supply chains and industry structure in several ways. Funding is crucial to fuel collaborations towards lower-carbon solutions and technological breakthroughs for viable scale-ups of renewable energy and emission control measures.

The economic recovery post-pandemic in Asia remains uneven. Energy security must then be addressed immediately as communities need to have the right to access safe and clean energy.

Over 850 speakers and more than 4,000 participants from more than 80 countries congregated at CERAWeek 2022 in Houston from 7-11 March, to share ideas and develop our understanding of the pace of change in the industry and the opportunities it holds.