KUALA LUMPUR: Southeast Asian National Oil Companies (NOCs) and traditional upstream players are progressively focusing on cleaner, more environmentally friendly energy initiatives with investments set to exceed US$76 billion between 2023 and 2025, according to Rystad Energy (US$1 = RM4.65).
The Oslo, Norway-based independent energy research and business intelligence company said the upward trend will continue, with a projected total outlay of US$119 billion by the end of 2027.
This spending will be driven by investments in wind, solar and geothermal projects.
“Regional NOCs like Indonesia’s Pertamina are expanding their involvement in geothermal, while Malaysia’s Petronas aims to establish a notable presence in the carbon capture, utilization and storage (CCUS) market.
“The Malaysian NOC announced ambitious plans to build the world’s largest dedicated facility by 2025, actively seeking partnerships with international entities to unlock potential for regional projects,” senior supply chain analyst Afiqah Mohd Ali said in a statement. .
He said that when fully operational, the initiative would have the capacity to capture 3.3 million tons per year (MTPA) of carbon dioxide (CO2) and safely store the collected CO2 within reservoirs in the Sarawak region. during its 25-year operating life.
While the full cost of the project remains undisclosed, Rystad Energy estimates suggest it could reach US$260 million by 2025.
Similarly, Gentari, a wholly owned subsidiary of Petronas, has made substantial investments in solar capabilities, seeking to harness the nation’s considerable renewable energy potential.
Between 2023 and 2026, Petronas will spend $450 million on CCUS projects and $330 million on hydrogen developments. – Bernama
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