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Petronas to set up new entity focused on renewable energy

Petronas to set up new entity focused on renewable energy
Photo courtesy of Petronas

Malaysia’s state-owned oil and gas company, Petroliam Nasional Berhad (Petronas) will set up a new independent entity that will focus entirely on three sectors: renewable energy, hydrogen and green mobility. The new entity, which will be established this year, aims to solve the clean energy needs of its customers and support the group’s global aspirations. 

A carbon management unit will also be set up to manage the carbon storage portfolio for emissions from operations and to establish a regional carbon storage hub as a new revenue generator.

“With the launch of our new entity in mid-2022 and the setup of our Carbon Management Unit, it is envisaged that Petronas will evolve into an energy ‘superstore’ that will provide customers with a suite of energy and solutions that power businesses, and fuels progress in a just and sustainable manner,” said Datuk Tengku Muhammad Taufik, president and group CEO.

“2022 will be a year that Petronas will need to step up even more meaningfully in pursuing its purpose: to become a progressive energy and solutions partner enriching lives for a sustainable future. Aligned to our three-pronged growth strategy and net zero carbon emissions by 2050 aspiration, Petronas is committed to ensuring that energy can continue to be produced and delivered responsibly and sustainably.”

Petronas announced in November 2020 its aspiration to achieve net zero carbon emissions by 2050. Petronas’ aspiration is guided by the four pillars of Petronas’ sustainability agenda, which demonstrates the company’s long-term commitment to continued value creation, safeguarding the environment, positive social impact and responsible governance throughout its integrated value chain.  

Over the next five years, Petronas has targeted to allocate 20% of its annual capital expenditure into new energy and net-zero carbon initiatives.

In related news, Petronas appointed Adnan Zainal Abidin as chief operating officer, the first appointment for the post since 2012. The previous COO was Tan Sri Wan Zulkiflee, who was later appointed as the president and CEO of Petronas in 2015.

Adnan comes into the role following the reshuffling of Petronas’ new energy business unit. He will remain in his post as the executive vice president and CEO of Petronas’ gas business.