NATIONAL ENERGY POLICY READY IN H2?
Blueprint to outline specific action plans to develop sector, says Mustapa
THE Economic Planning Unit is finalising the National Energy Policy, which is expected to be launched in the second half of this year.
Minister in the Prime Minister’s Department (economic affairs) Datuk Seri Mustapa Mohamed said the blueprint entailed specific action plans to develop Malaysia’s energy sector in its transition towards a low carbon future.
“In realising the shared aspirations of oil and gas (O&G) players towards a more sustainable future, continued discourse is of paramount importance.
“I am confident that collaboration and sharing of ideas, particularly in the science and technology related to the upstream sector, will facilitate oil and gas players to achieve this,” said Mustapa at the 13th International Petroleum Technology Conference (IPTC 2021) yesterday.
The event, themed “Progressive Collaboration and Innovative Solutions: Shaping the Future of Energy,” is hosted by Petroliam Nasional Bhd (Petronas) together with Mubadala Petroleum and Schlumberger Ltd.
Mustapa said the accelerating pace of energy transition would create pathways for economies and industry players to focus on clean and sustainable energy sources.
“With countries and players committing themselves to a netzero carbon future, we expect to see the rapid growth of non-traditional sources of energy, including hydrogen and naturebased solutions,” he added.
Mustapa said there was an increasing need for industry players to demonstrate their commitment to environmental, social, and governance goals, in line with a more sustainable future.
“Notwithstanding the challenges, O&G will remain the most important source of energy for the foreseeable future,” he said, adding that the International Energy Agency projected that oil and gas would remain the dominant fuel, even in 2040.
Natural gas would play an even more critical role in facilitating energy transition, he added.
However, Mustapa said coal would not be a viable option in the future despite it being considerably more economical due to its detrimental environmental effects.