Petronas looks to achieve net zero carbon emissions status by 2050

Malaysia's state-run Petronas has set a target to achieve net zero carbon emissions status by 2050 as it steps up efforts to embrace cleaner forms of energy, joining a growing list of global oil firms looking to transform themselves into integrated energy firms in their quest to prepare for the energy transition process.

"As the world contends with the many challenges brought about by energy transition, Petronas is embracing its role in providing access to affordable, secure and sustainable energy to businesses and society," a company statement quoted president and group CEO, Tengku Muhammad Taufik, as saying.

"The group is committed to fulfill its purpose in providing cleaner energy and solutions that benefit both the world we live in as well as the customers we serve through reduced emissions," he added.

With this announcement, Petronas has joined a list of leading global firms including BP, Shell and Equinor, which have set similar targets. India's biggest private refiner Reliance Industries has also pledged to become a net carbon-zero firm by 2035.

Petronas would continue to intensify its efforts toward reducing emissions from its assets by deploying innovative operations and technologies, the statement said. "Together with these efforts, Petronas will also pursue new avenues of revenue creation via investments in nature-based solutions as well as establish greater accessibility to cleaner energy solutions."

Taufik told the India Energy Forum by CERAWeek Oct. 28 that Petronas would be pursuing most of its oil and gas projects, but by using more cost-effective and cleaner processes, as it strongly believes that those fuels will have a major role to play for the next three decades at least.

Taufik said Petronas saw gas as a transition fuel, adding that the company had a record year in 2019 for final investment decisions on LNG projects, although the process had taken a backseat this year because of the coronavirus pandemic.

Commenting on the company's interest in hydrogen during the forum, Taufik said Petronas would be looking at the hydrogen space carefully and was working towards a strategic push into the sector.

Petronas was also looking at some of non-traditional biofuels and was keeping a close eye on potential partners in that space. The company has also made investments in the solar sector in India and was looking for opportunities in other Asian countries.