Calm exterior, but O&G sector remains on guard
KUALA LUMPUR: The oil and gas (O&G) industry may appear calm on the surface, but it remains on guard, especially amid the current geopolitical tensions, said Petroliam Nasional Bhd (Petronas) president and group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz.
'I can't offer conclusive statistics, but based on observed behaviour, many oil and gas leaders here have had to step out every hour to manage operations and address regional exposures.
'That does not suggest calm. In fact, it is like a duck gliding across water, calm above, but paddling furiously beneath,' he said in response to a question about the industry's reaction to the conflict in the Middle East during a press conference today.
The press conference was held in conjunction with the second day of the three-day Energy Asia Conference 2025.
Tengku Muhammad Taufik said Petronas is closely monitoring the situation, noting that the national oil company has operations in Iraq and an active presence in the Middle East, with staff deployed in Abu Dhabi and Saudi Arabia.
'These are responsibilities that many overlook. Saudi Aramco president and chief executive officer Amin Nasser made this clear in his video message, emphasising that we should never underestimate the importance of maintaining supply availability during times of crisis. Disruptions like these can shock the entire system,' he added.
In response to another question, Tengku Muhammad Taufik confirmed that the government has initiated efforts to establish a third regasification terminal (RGT).
'While we continue to maintain a strong position in East Malaysia by exporting energy to our long-term partners and supporting their energy security, demand in Peninsular Malaysia is growing rapidly,' he said.
According to reports, Petronas has been mandated by the government to develop the country's third RGT to ensure energy supply security in Peninsular Malaysia.
The new facility, expected to be located in Lumut, Perak, will have a capacity at least comparable to the group's two existing RGTs in Sungai Udang, Melaka, and Pengerang, Johor.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
3 hours ago
- The Sun
Petronas, Italy's Eni ink JV framework
KUALA LUMPUR: Petroliam Nasional Berhad (Petronas) has entered into a joint venture framework agreement (JVFA) with Italian energy company Eni to further discussions and evaluations aimed at creating a regional upstream joint venture (JV) company. The agreement builds on a memorandum of understanding inked in December 2024. In a statement today, Petronas said that the JVFA reflects both companies' shared commitment to combine selected upstream interests in Malaysia and Indonesia. The national oil and gas company also said that the agreement is expected to deliver up to 500,000 barrels of oil equivalent per day of sustainable production, with approximately three billion barrels of developed reserves and an estimated 10 billion barrels of exploration potential. 'Definitive agreements are targeted for completion by end-2025, subject to regulatory, governmental, and partner approvals,' it said. In another statement, Petronas CCS Ventures Sdn Bhd (PCCSV), MISC Bhd (MISC), and Mitsui OSK Lines Ltd (MOL) have announced the incorporation of a strategic JV company, Jules Nautica Sdn Bhd. PCCSV is a wholly owned subsidiary of Petronas. This JV will lead the development and act as the ultimate owner of liquefied carbon dioxide (LCO2) carriers, which are critical for transporting LCO2 to designated storage sites as part of advancing carbon capture and storage (CCS) solutions. Petronas said that the JV aims to become a leading owner of LCO2 carriers, facilitating the safe and efficient transportation of LCO2 to designated carbon dioxide (CO2) storage sites. 'Focused on supporting future CCS projects across the Asia Pacific region, the JV will also play a key role in completing the CCS value chain. 'Through strategic commercial agreements with CO2-emitting industries and storage companies, this partnership will provide a critical cross-border solution to meet growing environmental and regulatory needs,' said Petronas.
The Sun
3 hours ago
- The Sun
Petronas, Italy's Eni ink JV framework to explore regional upstream collaboration
KUALA LUMPUR: Petroliam Nasional Berhad (Petronas) has entered into a joint venture framework agreement (JVFA) with Italian energy company Eni to further discussions and evaluations aimed at creating a regional upstream joint venture (JV) company. The agreement builds on a memorandum of understanding inked in December 2024. In a statement today, Petronas said that the JVFA reflects both companies' shared commitment to combine selected upstream interests in Malaysia and Indonesia. The national oil and gas company also said that the agreement is expected to deliver up to 500,000 barrels of oil equivalent per day of sustainable production, with approximately three billion barrels of developed reserves and an estimated 10 billion barrels of exploration potential. 'Definitive agreements are targeted for completion by end-2025, subject to regulatory, governmental, and partner approvals,' it said. In another statement, Petronas CCS Ventures Sdn Bhd (PCCSV), MISC Bhd (MISC), and Mitsui OSK Lines Ltd (MOL) have announced the incorporation of a strategic JV company, Jules Nautica Sdn Bhd. PCCSV is a wholly owned subsidiary of Petronas. This JV will lead the development and act as the ultimate owner of liquefied carbon dioxide (LCO2) carriers, which are critical for transporting LCO2 to designated storage sites as part of advancing carbon capture and storage (CCS) solutions. Petronas said that the JV aims to become a leading owner of LCO2 carriers, facilitating the safe and efficient transportation of LCO2 to designated carbon dioxide (CO2) storage sites. 'Focused on supporting future CCS projects across the Asia Pacific region, the JV will also play a key role in completing the CCS value chain. 'Through strategic commercial agreements with CO2-emitting industries and storage companies, this partnership will provide a critical cross-border solution to meet growing environmental and regulatory needs,' said Petronas.
The Sun
4 hours ago
- The Sun
Petronas signs 20-year deal to purchase gas from US-based Commonwealth LNG
PETALING JAYA: Petroliam Nasional Bhd (Petronas), through subsidiary Petronas LNG Ltd, has entered a liquefied natural gas (LNG) sale and purchase agreement with Commonwealth LNG LLC, marking a key milestone in its strategy to diversify its LNG portfolio through long-term supply from the United States. Under the agreement, Petronas is purchasing one million tonnes per annum (mtpa) of LNG from Commonwealth LNG for 20 years from Commonwealth LNG's 9.5 mtpa facility currently under development in Cameron, Louisiana. The agreement was commemorated at a document exchange ceremony between Petronas LNG Ltd CEO Ezran Mahadzir and Commonwealth LNG president and CEO Farhad Ahrabi on the sidelines of Energy Asia 2025. Petronas LNG marketing and trading vice-president Shamsairi M Ibrahim said, 'This agreement underscores Petronas' commitment to fostering global partnerships that ensure reliable, sustainable and long-term LNG supply for our customers. Collaborating with Commonwealth LNG will expand our supply node and strengthen our presence in the global LNG market.' The collaboration signifies a key step towards a shared ambition to deliver sustainable energy solutions advancing strategic energy collaboration, contributing to regional energy security and reinforcing Commonwealth LNG's role as a reliable player in the global LNG landscape, Petronas said in a statement today. Farhad said, 'We're pleased to establish this partnership and proud that Commonwealth LNG has been invited to help extend Petronas' successful history of more than a half-century in serving global energy needs.'
