Petronas CEO: Malaysia could become net energy importer within five years

New Straits Times

5 hours ago

KUALA LUMPUR: Malaysia could become a net energy importer within the next five years amid rising electricity demand, said Petroliam Nasional Bhd (Petronas) president and group chief executive officer Tengku Tan Sri Muhammad Taufik.
He said that the surge is driven by rapid economic development, a growing middle class and increasing reliance on technologies like artificial intelligence (AI).
Speaking at a press conference in conjunction with the Energy Asia 2025, Tengku Muhammad Taufik warned that the current electricity supply infrastructure may struggle to keep up with surging demand, which has been growing at an annual rate of 6.5 per cent.
He noted that the company is already prepared for this scenario and is currently working to establish a third regasification terminal, following those in Melaka and Johor.
"Electricity demand is no longer just from industry and households, but also increasingly from data centres and AI-driven systems. Existing supply alone won't be able to support this," he said.
Tengku Taufik said that while Malaysia continues to export liquefied natural gas (LNG) from East Malaysia, the demand in Peninsular Malaysia will soon outstrip supply.
We already enjoy the gas supply being able to be robustly sourced not only from our fields offshore east coast of Peninsular Malaysia, but also from our joint development area in Thailand.
"About two billion cubic feet of gas that has been delivered to reach our coast and also service the power and non-power needs is going to be outstripped.
"Depending on the gas reforms we can expect in the next four to five years, we are going to be growing dependence on a LNG," he added.
On global energy volatility, he pointed to the recent rapid jump in oil prices from US$65 to US$75 following missile strikes in the Middle East as a clear sign of how sensitive global markets are to geopolitical shocks.
"Anecdotally, you can see it in the behaviour here — the number of oil and gas leaders who've had to step out every hour to manage operations and monitor their exposure in the region.
"I don't think anyone's calm. If anything, it's the phenomenon of the ducks swimming over water, we are paddling furiously," he said.
Petronas, which has operations in Iraq and personnel based in Abu Dhabi, is among the energy players directly impacted by instability in the region.
"Many underestimate the importance of reliable energy supply, especially during a crisis. Overreliance without consistent investment in infrastructure can lead to severe disruptions," Tengku Taufik added.
He echoed a warning by Saudi Aramco CEO Amin Nasser, urging the industry not to downplay the importance of energy availability during geopolitical crises.
"This is not just about price. It's about the resilience and continuity of the entire energy system.
"The industry is often caught in a cycle of inconsistent investment. when supply seems sufficient, funding dries up. But when demand picks up again, we scramble to catch up," Tengku Taufik added.