The executive also emphasized the importance of oil and gas for energy security, noting that 80% of global demand is still met by fossil fuels and that 10% of the world’s population continues to live without access to electricity.
Malaysia is preparing to become the leading carbon capture and storage (CCS) hub in the Asia-Pacific region. The statement was made today (November 5) by Suhana Sidik, Country Chair of PETRONAS in Brazil, during the 8th edition of the Energy Transition Research & Innovation Conference (ETRI) — held at the University of São Paulo (USP) by the Research Centre for Greenhouse Gas Innovation (RCGI-USP) in partnership with the Offshore Technology Innovation Centre (OTIC-USP).
According to Sidik, the country has already passed a CCS law allowing the import of CO₂ from other nations and is developing projects that include the injection of 3.2 million tonnes of CO₂ into a single offshore reservoir — one of the largest in the world.
The executive also revealed that the state-owned company is developing a low-carbon transport vessel eight times larger than current LNG carriers and that one-third of PETRONAS’ R&D workdays are dedicated to CCS. “We currently have a lot of contaminated fuel gas, and to ensure we can continue to provide energy security in Malaysia, we need to produce high-value gas with lower emissions,” she explained.
Founded in 1974, PETRONAS owns all of Malaysia’s oil and natural gas reserves and has been investing heavily in decarbonization technologies. Since 2013, the company has reduced its emissions by 60% and now offers CO₂ storage as a service, taking advantage of the country’s geological formations and depleted reservoirs. “We have enough capacity not only for PETRONAS but also to support the decarbonization of other Asia-Pacific countries,” Sidik highlighted.
She also noted that the energy transition is progressing at different paces around the world, but all nations share the need to reduce emissions and ensure independence from fossil fuels. Since 2013, the world has invested US$ 11 trillion in the energy transition, yet 80% of global demand is still met by oil, gas, and coal — and 10% of the planet’s 8 billion people still lack access to electricity.
“When we talk about energy, energy poverty is a global reality. And when we talk about demand, much of it stems from the world’s fast move toward the fifth industrial revolution — driven by artificial intelligence, which now consumes twice the electricity compared to six years ago,” she emphasized.
Sidik also observed that the transition’s challenges include the competition between the United States and China for the extraction of rare earth elements, essential for energy storage in electric vehicles — a supply chain that already accounts for up to 4% of global energy demand and could double or even octuple by 2060.
“All of this will continue to require an intense and extensive energy demand. Therefore, we must recognize the importance of oil and gas in supporting the energy transition,” she said. Sidik cited Brazil’s example: more than 50% of the US$ 700 million invested in renewable natural gas comes from oil and gas companies. “These companies help provide affordable energy to the 800 million people who still live without electricity — and they must do so responsibly and sustainably.”
Sidik also reaffirmed that energy security is one of PETRONAS’ central commitments. “Looking ahead to 2050, 50% of global energy demand will come from the Asia-Pacific. The region needs affordable and reliable energy,” she said, adding that many Asian and African countries are moving from coal to gas — not directly to renewables.
The executive further emphasized the importance of nature-based solutions and South-South collaborations. One example is the Blue Carbon Collective project, which investigates the ability of mangroves to capture and store carbon, in partnership with the University of São Paulo (USP) and Universiti Putra Malaysia (UPM). The five-year initiative aims to generate valuable data for mitigation and conservation strategies, as well as create local jobs and business opportunities.
“What we wanted was to leverage much of the work already done by RCGI in Brazil. We saw excellent results that can be replicated in Malaysia,” said Sidik. She concluded her remarks by inviting researchers and startups to join PETRONAS in innovation challenges related to the energy transition. “I believe there is high-quality research being done here in Brazil that we can further enhance. We hope this collaboration becomes an international benchmark partnership in decarbonization, strengthening global cooperation,” she concluded.