Malaysia plans to introduce a robust regulatory framework in parliament by November with the aim of establishing Malaysia as a global carbon capture, utilisation and storage (CCUS) hub, said Economy Minister Rafizi Ramli.
He said Malaysia is at a “sweet spot” and that time has come for Malaysia to leapfrog and position itself as a CCUS leader as it has the experience and advantage, with a market fit for it.
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He said Malaysia is at a “sweet spot” and that time has come for Malaysia to leapfrog and position itself as a CCUS leader as it has the experience and advantage, with a market fit for it.
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NewsTranscript
00:00The case of natural gas is more nuanced.
00:14Global gas demand is expected to grow beyond 2030.
00:19Most of this demand will actually be coming from here in Asia.
00:25Asia's own energy mix will see natural gas grow from 43% to 56% between 2023 and 2050.
00:37Because as we push forward for the next agenda in our economic transformation, and that ultimately
00:44revolves around AI, around chips and semiconductors, we can't run away from the truth that there
00:52will be increased demand for power.
00:56Therefore this forces any discussion on addressing the energy trilemma to factor in the role
01:04of natural gas.
01:06Not only does it secure our energy supply, it gives us the time to build a sustainable
01:13and robust renewable energy infrastructure.
01:17I believe this makes natural gas a core linchpin for energy transition, and I hope the message
01:26is very clear out there, especially if there are concerns about are we in haste to phase
01:36out oil and gas, especially to the oil and gas players.
01:41If we talk about future-proving our industry and our economy, energy transition draws from
01:51more or less the same skill sets.
01:56And Malaysia and our industry has a head start, because we have had a very good oil and gas
02:04industries in the past.
02:06Therefore the question of securing the future of oil and gas is tantamount to securing the
02:13future of national development.
02:16The pathway to remaining at that centre lies in deleveraging our short-term bets on oil,
02:25shoring up natural gas, and embracing renewables for long-term gains.
02:32So that's more or less the 30-year horizon that we look at, at the ministry and the government.
02:40And the Ministry of Economy is the central agency that plans all this.
02:46In energy transition, traditional players are well positioned to balance their risk
02:53exposures across their portfolios.
02:56This is an in-built competitive advantage that we have.
03:03As energy sources compete against each other, the trade-off in reduced consumption of fossil
03:10fuels is offset by an increased consumption of renewables.
03:16Carbon capture is the natural extension of enhanced oil recovery.
03:21I mean, I don't have to explain that in this hall.
03:24I have to really explain and break it down one by one when I speak about CCUS to non-oil
03:31and gas people.
03:32I mean, it's like there's a big concern that we are storing something that is combustible
03:37and is going to blow up one day, and why Malaysia needs something like this.
03:44It has been there for many, many years, because carbon capture is part and parcel of EOR.
03:52It's building on that process that Malaysia now is in a sweet spot, because we have the
04:02experience, we have the advantage, and now there is a product market fit for it.
04:11And given that Asia alone will make up 50% of global CCUS demand in 2050, Malaysia has
04:19taken swift action to capitalise on our inherent technical capabilities and region-leading
04:27storage sites.
04:29We are going to Parliament in November to table a robust regulatory framework that is
04:36benchmarked against international standards.
04:39The time has come for Malaysia to leapfrog and position ourselves as a CCUS leader, not
04:50just in this region, but globally.
04:55I hope the Act that we will table in November will speed up all components of CCUS industry
05:07to come together to position Malaysia as a regional and global leader in CCUS.
05:15At the same time, as part of our ambition to become a regional and global CCUS hub,
05:27we are pursuing and will sign a series of MOUs with several countries to enable for
05:38international transportation of carbon.