PETRONAS Strengthens Methane Emissions Management, Boosts Decarbonisation Efforts via New Alliances at COP27

KUALA LUMPUR, 11 November 2022 – PETRONAS has announced its signatory membership to the United Nations Environment Programme (UNEP)’s Oil and Gas Methane Partnership 2.0 (OGMP2.0), as well as the International Renewable Energy Agency’s (IRENA) global Alliance for Industry Decarbonisation at the ongoing UN Climate Change Conference COP27 in Sharm El Sheikh, Egypt.

These memberships signify the Company’s efforts for greater transparency and drive towards decarbonisation and scaling up of cleaner energy solutions aligned with the Group’s aspiration to achieve Net Zero Carbon Emissions by 2050 (NZCE 2050) to meet the goals of the Paris Agreement.

PETRONAS President and Group Chief Executive Officer, Datuk Tengku Muhammad Taufik said, “As we embark on our pathway to NZCE 2050, PETRONAS recognises its responsibility to demonstrate transparency in how we deliver energy in order to meet growing demand, while still achieving the net zero ambitions of societies wherever we operate. By supporting the reporting framework under OGMP 2.0 and the efforts by IRENA to foster effective mitigation strategies for emissions, PETRONAS will continue to take even more credible actions as we progress towards our target. PETRONAS remains resolute in its commitment to work with stakeholders and customers in addressing energy transition in a just and responsible manner.”

OGMP 2.0 is UNEP’s methane oil and gas reporting and mitigation programme for the oil and gas industry. It provides a comprehensive, measurement-based, international reporting framework for the sector. OGMP 2.0 member companies represent over 30 per cent of the global oil and gas production in more than 60 countries, as well as over 20 per cent of global natural gas transmission and distribution pipelines, 10 per cent of global storage capacity and nearly 15 per cent of global LNG terminals.

The framework will systematically enhance PETRONAS’ approach on methane emissions measurement, quantification, reporting, and implementation of its decarbonisation levers particularly zero routine flaring and venting, and energy efficiency.

UNEP OGMP 2.0 Programme Manager, Giulia Ferrini said, "We are delighted to have PETRONAS on board and expand our coverage to Asia, making OGMP 2.0 a truly global initiative. The oil and gas industry has the greatest potential to achieve rapid methane emissions reductions, so it is critical to seize that opportunity."

Meanwhile, recognising the importance of transparency in managing climate-related risks and unlocking new opportunities, PETRONAS has joined the Alliance for Industry Decarbonisation, alongside IRENA and other global companies across industrial sectors.

IRENA Director-General, Francesco La Camera said, “We have less than a decade left to secure a fighting chance for a 1.5°C world. Climate action needs industry leaders. This Alliance stands for the growing commitment of global industry to act on decarbonisation.”

The Alliance for Industry Decarbonisation aims to contribute to the specific net zero goals of countries, foster action for decarbonisation of industrial value chains, and enhance understanding of renewables-based solutions and their adoption by industries.

PETRONAS’ membership in the Alliance is part of the company’s efforts to support the 12^th Malaysia Plan target on increasing renewable energy capacity, as well as contribute to the country’s climate commitment to reduce its economy-wide carbon intensity (against GDP) of 45 per cent in 2030 compared to 2005 level.