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- PETRONAS Energy Transition Strategy
- PETRONAS Net Zero Carbon Emissions 2050 Pathway
PETRONAS Energy Transition Strategy
As the momentum for the energy transition accelerates, we have strengthened our business foundation to pursue our journey through the PETRONAS Energy Transition Strategy.
Core
BusinessMore Energy, Less Emissions
Operate oil and gas in a differentiated manner, safely, reliably, with focus on reducing carbon emissions and at competitive cost.
New
BusinessCapturing New Growth Opportunities
Capture growth opportunities in renewables and cleaner, less emission-intensive energy solutions including Specialty Chemicals, Carbon Capture & Storage (CCS), bio-based value chain, hydrogen and green mobility.
Net Zero
Carbon
EmissionsPathway to Net Zero
We have identified key abatement levers to decarbonise PETRONAS’ emissions, and have allocated resources to meet our short and medium-term targets in our progress towards achieving net zero carbon emissions by 2050.
Why It Is Important
Climate change, collective multilateral agreements around decarbonisation and technological advancements are driving forces behind the energy transition that is destined to move the world economy towards a lower carbon future. This is in alignment with global efforts to reduce emissions as managing the climate has become an integral part in energy transition.
With the PETRONAS Net Zero Carbon Emissions by 2050 Pathway, we are committed to addressing emissions from our operations and working towards cleaner energy targets. We continue to make significant investments to reduce our own environmental impact and work across our value chain and with partners to drive a broader energy system change.
Our Approach
PETRONAS’ aim is to achieve Net Zero Carbon Emissions by 2050, anchored in our Energy Transition Strategy, in line with our Statement of Purpose: “A progressive energy and solutions partner, enriching lives for a sustainable future.”
We have set a near-term target to cap operational emissions to 49.5 million tonnes of carbon dioxide equivalent (CO2e) by 2024 in Malaysia and achieve 25 per cent absolute emissions reduction Groupwide by 2030, based on 2019 emissions data. Delivery of these targets is anchored on our business context, national policies, international frameworks and scientific consensus on climate change that supports the ambitious goals outlined in the Paris Agreement.
Also, as the custodian of Malaysia’s oil and gas resources, we intend to seize the opportunities and provide the world with the energy it needs today with consideration for the climate goals of the Paris Agreement. We will also focus on developing new technologies and value chains, which will not only mitigate emissions but also open new areas for business.
Click here for further details on our greenhouse gas (GHG) data.
Our Pathway to Net Zero
PETRONAS became Southeast Asia’s first oil and gas company to declare its aspiration of achieving net zero carbon emissions by 2050. In the PETRONAS Pathway to Net Zero Carbon Emissions 2050, we have set out the details and actions the organisation will be taking to fulfil this commitment.
Our Targets
Reducing our Operational Greenhouse Gas Emissions
Zero Routine Flaring and Venting
Implementing flare gas recovery projects, improvements in compressor capacity, vent-to-flare conversion and vent recovery projects. To this aim, we have endorsed the World Bank's Zero Routine Flaring by 2030 Initiative. PETRONAS has pledged to avoid routine flaring in new oil field developments and end routine flaring at existing oil production sites by 2030.
Electrification
Investing in and developing renewable energy infrastructure to power PETRONAS' operations and processes, which include, among other things, fuel gas replacement with electricity where feasible.
Energy Efficiency
Building on existing operational excellence with technology and innovation, such as implementation of digital solutions and process equipment advancement, to uplift process optimisation initiatives such as optimising gas turbine operations, superior heat transfer, furnace, and boilers efficiency, etc.
Carbon Capture and Storage (CCS)
Develop carbon capture and storage solutions in partnership with technology providers, focusing on efforts to capture carbon dioxide and injecting it into deep geological formations for permanent secure storage. With the applied technologies and innovation, the joint partnerships will drive PETRONAS' efforts towards net zero carbon emissions by 2050.
Methane Emissions Management
Since 2020, we have increased our efforts to raise awareness, build skills, and take action to reduce methane emissions throughout our operations. We align our methane emissions management with the Methane Guiding Principles (MGP) that prioritise key actions along the natural gas supply chain.
As a signatory member of the Methane Guiding Principles and United Nations Environment Programme (UNEP) Oil and Gas Methane Partnership 2.0 (OGMP2.0), we commit to advancing robust performance across gas value chains, enhancing the accuracy and quality of methane emissions data, advocating best practices, sound policies, and regulations on methane emissions, capability building and increasing the transparency of methane emissions to better manage them.
2020 Methane Guiding Principles (MGP)PETRONAS became a signatory member of the Methane Guiding Principles (MGP) partnership, a voluntary, international multi-stakeholder partnership that is committed to reducing methane emissions from the natural gas supply chain.
2021 Zero Routine Flaring by 2030PETRONAS endorsed the global pledge of zero routine flaring by 2030 with the aim to avoid routine flaring in new oil field developments and end routine flaring at existing oil production sites by 2030.
2021 United Nations Environment Programme (UNEP)’s Oil And Gas Methane Partnership 2.0 (OGMP2.0)PETRONAS announced as a signatory membership to the United Nations Environment Programme (UNEP)’s Oil And Gas Methane Partnership 2.0 (OGMP2.0), an internationally recognized framework for effective industry-specific methane emissions management.
2022 Global Methane Pledge Energy PathwayPETRONAS showed its support for the Global Methane Pledge Energy Pathway, that aims to accelerate deployment of the fastest and most cost-effective methane mitigation solutions available today.
Methane Reduction Highlights
- PETRONAS has pursued a focused effort on emission reductions over the past decade by reducing flaring and venting from hydrocarbon production that are the main sources of methane emissions.
- Converting vented and flared gas into exported gas has also had the added benefit of monetary returns.
Our emissions reductions are driven by efforts to enhance the transparency of our methane emissions disclosures
Our journey towards accurately measuring and quantifying methane emissions
Established a technical standard on Methane Quantification & Reporting aligned with OGMP 2.0.
Improved quantification baseline and expanded quantification boundary.
- Identified 11 common sources of methane emissions from Upstream and Gas assets.
Actively exploring and piloting innovative methane measurement technologies with third parties.
- Tested satellite and drone technology, from onshore and nearshore facilities, to find optimal top-down methane measurement, complementing source level measurements.
PETRONAS, through Malaysia Petroleum Management (MPM), rolled out the PETRONAS Exploration and Production Minimum Environmental Specification.
- Outlines minimum requirements for methane emissions measurement, quantification, and reporting by all Production Sharing Contracts (PSC)s operating in Malaysia.
Developed the PETRONAS Gold Standard Implementation Plan for OGMP Gold Standard submission.
- Currently developing and executing the plans on all material and immaterial assets.
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