Cleaner Energy Initiatives for Downstream Business, says PETRONAS

PETRONAS has released its 2024-2026 Activity Outlook, outlining forecasted activities which call for greater collaboration with the Oil and Gas Service and Equipment (OGSE) providers to ensure energy demand is met while ramping up its clean energy initiatives.

In the document released to the public, the company shared future plans for its downstream business, and reiterated its commitment to the Two-Pronged Strategy that focuses on sustaining the company’s strength in basic petrochemicals while also selectively diversifying into derivatives, specialty chemicals and solutions.   

PETRONAS also stressed the importance of prioritising attraction and retention of talent in the industry, which is currently grappling with capacity shortages and growing capability gaps; the document urges industry stakeholders to promote and support Technical and Vocational Education and Training (TVET) graduates and increase awareness of incentives provided.

The downstream business is increasingly expanding into cleaner energy initiatives, venturing into biofuels with the ongoing development of a greenfield biorefinery and co-processing plant set to begin in 2026, alongside the expansion of LNG bunkering and the PETRONAS Iona range – a dedicated range of automotive fluid solutions for electric vehicles (EVs) and other thermal management application across diverse sectors.

Its petrochemical arm is also making inroads into the specialty chemicals market segment and is actively driving the circular economy through the construction of Asia’s largest advanced chemical recycling plant that converts end-of-life plastics into pyrolysis oil to be used as chemical feedstock for sustainable plastic production.

Said Freida Amat, PETRONAS Vice President of Group Procurement, “The energy sector must rapidly transform amidst the shifting energy landscape and demand for cleaner energy solutions while balancing the energy trilemma of security, affordability and sustainability… The industry should be gearing towards adapting to the energy transitions, such as shifting towards lower-carbon endeavours, pursuing net zero emissions, and exploring renewable energy sources.”

The 2024-2026 Activity Outlook may be viewed here.