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- PETRONAS Energy Transition Strategy
- PETRONAS Net Zero Carbon Emissions 2050 Pathway
- Stories
PETRONAS Energy Transition Strategy
As the momentum for the energy transition accelerates, we have strengthened our business foundation to pursue our journey through the PETRONAS Energy Transition Strategy.
Core
Business
More Energy, Less Emissions
Operate oil and gas in a differentiated manner, safely, reliably, with focus on reducing carbon emissions and at competitive cost.
New
Business
Capturing New Growth Opportunities
Capture growth opportunities in renewables and cleaner, less emission-intensive energy solutions including Specialty Chemicals, Carbon Capture & Storage (CCS), bio-based value chain, hydrogen and green mobility.
Net Zero
Carbon
Emissions
Pathway to Net Zero
We have identified key abatement levers to decarbonise PETRONAS’ emissions, and have allocated resources to meet our short and medium-term targets in our progress towards achieving net zero carbon emissions by 2050.
Why It Is Important
Climate change, collective multilateral agreements around decarbonisation and technological advancements are driving forces behind the energy transition that is destined to move the world economy towards a lower carbon future. This is in alignment with global efforts to reduce emissions as managing the climate has become an integral part in energy transition.
With the PETRONAS Net Zero Carbon Emissions by 2050 Pathway, we are committed to addressing emissions from our operations and working towards cleaner energy targets. We continue to make significant investments to reduce our own environmental impact and work across our value chain and with partners to drive a broader energy system change.
Our Approach
PETRONAS’ aim is to achieve Net Zero Carbon Emissions by 2050, anchored in our Energy Transition Strategy, in line with our Statement of Purpose: “A progressive energy and solutions partner, enriching lives for a sustainable future.”
We have set a near-term target to cap operational emissions to 49.5 million tonnes of carbon dioxide equivalent (CO2e) by 2024 in Malaysia and achieve 25 per cent absolute emissions reduction Groupwide by 2030, based on 2019 emissions data. Delivery of these targets is anchored on our business context, national policies, international frameworks and scientific consensus on climate change that supports the ambitious goals outlined in the Paris Agreement.
Also, as the custodian of Malaysia’s oil and gas resources, we intend to seize the opportunities and provide the world with the energy it needs today with consideration for the climate goals of the Paris Agreement. We will also focus on developing new technologies and value chains, which will not only mitigate emissions but also open new areas for business.
Guided by International Principles, Frameworks and Standards
- ISO 14064-1:2018, Greenhouse gases — Part 1: Specification with guidance at the organisational level for quantification and reporting of greenhouse gas emissions and removals.
- ISO 14064-2:2019, Greenhouse gases — Part 2: Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas emission reductions or removal enhancements.
- ISO 14064-3:2019, Greenhouse gases — Part 3: Specification with guidance for the verification and validation of greenhouse gas statements.
- ISO 14065:2020, General principles and requirements for bodies validating and verifying environmental information.
- ISO 14064-4, Greenhouse gases — Part 4: Guidance for the application of ISO 14064-1.
- IWA 42:2022, Net Zero Guidelines: Principles, definitions and best practices for achieving net zero greenhouse gas emissions.
- American Petroleum Institute (API), Compendium of Greenhouse Gas Emissions Methodologies for the Natural Gas and Oil Industry, November 2021.
- International Petroleum Industry Environmental Conservation Association (IPIECA), Petroleum Industry Guidelines for Reporting Greenhouse Gas Emissions, 2nd edition, 2011.
- IPIECA, API and International Association of Oil & Gas Producers (IOGP), Sustainability reporting guidance for the oil and gas industry, 4th Edition, 2020.
- World Resources Institute (WRI) & World Business Council for Sustainable Development (WBCSD), The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, 2004.
- World Resources Institute (WRI) World Business Council for Sustainable Development (WBCSD), The Greenhouse Gas Protocol for Project Accounting, 2003.
- World Resources Institute (WRI) World Business Council for Sustainable Development (WBCSD), Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Accounting and Reporting Standard, 2011.
- World Resources Institute (WRI) World Business Council for Sustainable Development (WBCSD), Greenhouse Gas Protocol: Technical Guidance for Calculating Scope 3 Emissions, 2011.
- World Resources Institute (WRI) World Business Council for Sustainable Development (WBCSD), Greenhouse Gas Protocol: Scope 2 Guidance, 2015.
- Allocation of GHG Emissions from a Combined Heat and Power Plant, 2006.
- Intergovernmental Panel on Climate Change (IPCC), Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories: Chapter 6 — Uncertainty, 2000.
- The Physical Science Basis: Working Group I Contribution to the Sixth Assessment Report, 2021.
- Science Based Targets initiative (SBTi), Annex D: Fuel Specific Calculation for the Well-to-Wheel Indicator, 2020.
- International Sustainability Standards Board (ISSB), IFRS S2 Climate-related Disclosures, 2023.
- United Nations Environment Programme (UNEP) Oil and Gas Methane Partnership 2.0 (OGMP 2.0) Reporting Framework.
Aligned with the UN Sustainable Development Goals (SDGs)
For further details on our greenhouse gas (GHG) data, please click here. The GHG verification statements can be accessed here.
Our Pathway to Net Zero
PETRONAS became Southeast Asia’s first oil and gas company to declare its aspiration of achieving net zero carbon emissions by 2050. In the PETRONAS Pathway to Net Zero Carbon Emissions 2050, we have set out the details and actions the organisation will be taking to fulfil this commitment.
Our Targets
Achieved target
Reducing our Operational Greenhouse Gas Emissions
Zero Routine Flaring and Venting
Implementing flare gas recovery projects, improvements in compressor capacity, vent-to-flare conversion and vent recovery projects. To this aim, we have endorsed the World Bank's Zero Routine Flaring by 2030 Initiative. PETRONAS has pledged to avoid routine flaring in new oil field developments and end routine flaring at existing oil production sites by 2030.
Electrification
Investing in and developing renewable energy infrastructure to power PETRONAS' operations and processes, which include, among other things, fuel gas replacement with electricity where feasible.
Energy Efficiency
Building on existing operational excellence with technology and innovation, such as implementation of digital solutions and process equipment advancement, to uplift process optimisation initiatives such as optimising gas turbine operations, superior heat transfer, furnace, and boilers efficiency, etc.
Carbon Capture and Storage (CCS)
Develop carbon capture and storage solutions in partnership with technology providers, focusing on efforts to capture carbon dioxide and injecting it into deep geological formations for permanent secure storage. With the applied technologies and innovation, the joint partnerships will drive PETRONAS' efforts towards net zero carbon emissions by 2050.
Methane Emissions Management
Since 2020, we have increased our efforts to raise awareness, build skills, and take action to reduce methane emissions throughout our operations.
As a signatory member of the United Nations Environment Programme (UNEP) Oil and Gas Methane Partnership 2.0 (OGMP2.0), we commit to advancing robust performance across gas value chains, enhancing the accuracy and quality of methane emissions data, advocating best practices, sound policies, and regulations on methane emissions, capability building and increasing the transparency of methane emissions to better manage them.
2020 Methane Guiding Principles (MGP)
PETRONAS became a signatory member of the Methane Guiding Principles (MGP) partnership, a voluntary, international multi-stakeholder partnership that is committed to reducing methane emissions from the natural gas supply chain.
Note: Having achieved its objectives, the MGP initiative was retired in July 2025.
2021 Zero Routine Flaring by 2030
PETRONAS endorsed the global pledge of zero routine flaring by 2030 with the aim to avoid routine flaring in new oil field developments and end routine flaring at existing oil production sites by 2030.
2021 ASEAN ENERGY SECTOR METHANE ROUNDTABLE
The ASEAN Energy Sector Methane Roundtable was established in October 2021, with the objective to promote collaboration on methane emissions management in the oil and gas sector.
2022 United Nations Environment Programme (UNEP)’s Oil And Gas Methane Partnership 2.0 (OGMP2.0)
PETRONAS announced as a signatory membership to the United Nations Environment Programme (UNEP)’s Oil And Gas Methane Partnership 2.0 (OGMP2.0) , an internationally recognised framework for effective industry-specific methane emissions management.
2022 Global Methane Pledge Energy Pathway
PETRONAS showed its support for the Global Methane Pledge Energy Pathway, that aims to accelerate deployment of the fastest and most cost-effective methane mitigation solutions available today.
2023 METHANE LEADERSHIP PROGRAM
PETRONAS, in collaboration with ASEAN energy operators, governmental agencies and international organisations, launched the ASEAN Energy Sector Methane Leadership Program, or MLP, that focuses on capacity and capability building to strengthen ASEAN energy companies’ plans, targets, and financing options for reducing methane emissions.
2023 OIL AND GAS DECARBONIZATION CHARTER
PETRONAS became a signatory to the Oil and Gas Decarbonization Charter (OGDC). Signatories aim to work together to achieve net zero operations by or before 2050, near-zero methane emissions by 2030, and zero routine flaring by 2030
Achievements in OGMP 2.0
We achieved Gold Standard Reporting under the Oil and Gas Methane Partnership 2.0, reflecting the highest level of methane emissions data quality and transparent disclosure across our operated assets. This recognition validates the discipline we apply in measurement, verification and reporting.
Year 3 31 May 2025
Recognised with Gold Standard in Reporting status.
Year 2 31 May 2024
Recognised with Gold Standard Pathway status.
Year 1 31 May 2023
Awarded Gold Standard for the implementation plan.
Recognised with Gold Standard Pathway.
Recognised with Gold Standard Pathway.
Methane Reduction Highlights
- PETRONAS has pursued a focused effort on emission reductions over the past decade by reducing flaring and venting from hydrocarbon production that are the main sources of methane emissions.
- Converting vented and flared gas into exported gas has also had the added benefit of monetary returns.
Our emissions reductions are driven by efforts to enhance the transparency of our methane emissions disclosures
Our journey towards accurately measuring and quantifying methane emissions
Established a technical standard on Methane Quantification & Reporting aligned with OGMP 2.0.
Improved quantification baseline and expanded quantification boundary.
- Identified 11 common sources of methane emissions from Upstream and Gas assets.
Actively exploring and piloting innovative methane measurement technologies with third parties.
- Tested satellite and drone technology, from onshore and nearshore facilities, to find optimal top-down methane measurement, complementing source level measurements.
PETRONAS, through Malaysia Petroleum Management (MPM), rolled out the PETRONAS Exploration and Production Minimum Environmental Specification.
- Outlines minimum requirements for methane emissions measurement, quantification, and reporting by all Production Sharing Contracts (PSC)s operating in Malaysia.
Developed the PETRONAS Gold Standard Implementation Plan for OGMP Gold Standard submission.
- Currently developing and executing the plans on all material and immaterial assets.
Exploring Green Hydrogen Production in Asia
In November 2020, PETRONAS signed a Memorandum of Understanding with Sarawak Energy Berhad (SEB) for joint techno-commercial study of green hydrogen production and its value chain. This collaboration is expected to provide insights into the potentials of a hydrogen supply chain in Asia. Among the key areas in this partnership is a techno-commercial evaluation of a large-scale hydrogen production facility through the electrolysis process by utilising renewable energy supplied by SEB.
Making Sustainable Solutions Go Further
Our fuels, lubricants and functional fluids are developed to deliver superior performance in tough conditions. Engineered and tested in the world of motorsports, they produce proven results. These include high-octane petrol, sulphur-free diesel, and multi-purpose fuel additives; a new upgrade of our best-selling range of automotive engine oils and a range of sustainable biofuels with lower consumption, emissions and carbon footprint. There is also our first line of battery electric vehicle fluids, marking our entry into future markets. PETRONAS Fluid Technology Solutions™ offering is made possible by partners and experts who share the same vision as PETRONAS. Together we are committed to deliver cutting-edge fuels, engine oils, and functional fluids for a low-carbon future for the ultimate end-users
Better Everyday Products with Specialty Chemicals
With a total of USD27 billion invested in Pengerang Integrated Complex (PIC), we drive scalable innovation through specialty chemicals that will continue to generate value for PETRONAS. As one of the largest integrated refinery and petrochemical developments in this region, PIC has a refining capacity of 300 kbpd of crude. PIC will also diversify our feedstock reliability from gas-based to naphtha, and expand our petrochemical portfolio with a nameplate capacity of 3.3 mtpa, producing various products including specialty chemicals. These chemicals are vital for the production of quality everyday products that add value to people’s lives. We are also working towards making PIC the future site of Southeast Asia’s first chemical recycling project, which will convert mixed plastics waste into virgin quality polymer.
Producing Cleaner Energy to Lower Our Global Carbon Footprint
Building upon our experience as a fully-integrated global LNG player, we exemplified our commitment to sustainability with the world’s first floating LNG solution in 2016, the PFLNG SATU, a mobile facility capable of processing LNG while offshore. Its ability to reach stranded gas fields up to 200 metres underwater removes the need for pipelines, enabling us to produce cleaner energy while protecting the environment. In 2020, we continue to define the future of LNG with the introduction of the PFLNG DUA, the world’s first deep-water FLNG capable of extracting gas reserves up to 1,500 metres underwater. Delivered through innovation with an emphasis on reducing carbon emissions, our FLNG solutions enable us to power the world with an uninterrupted supply of cleaner energy produced in a sustainable manner.
A Brighter Future for All
With the acquisition of Amplus Energy Solutions Pte Ltd (M+) in April 2019, we established ourselves as an international renewables energy player, complementing our presence as a key global energy player. With M+, PETRONAS will be generating over 600 MWp of renewable energy annually to power over 150 commercial and industrial customers in 200 locations across India, Middle East and Southeast Asia. This reinforces our commitment towards creating a sustainable ecosystem, to combat greenhouse gas emissions and build a greener future for generations to come.
Future Facilities Reimagined
By using advanced materials, we optimise and strengthen operations integrity. Under our Facilities of the Future (FoF) programme, we automate hazardous and repetitive tasks to make offshore work safer and more efficient, safeguarding the well-being of our employees. The use of automation and robots also means reducing the operating cost of our offshore facilities, creating a more sustainable way of working for PETRONAS and our partners.
Accelerating Technology Innovations
We are committed to the development and scalability of future technology and the ecosystems that bring them to life. PETRONAS Ventures (formerly known as PETRONAS Corporate Venture Capital) was established in 2019, driving technology innovation to maintain PETRONAS’ competitive edge in this ever disruptive and challenging business environment. Our investment verticals focus on Industry 4.0, advance materials and specialty chemicals as well as future of energy.
We mark our foray into venture capital through investments in Braintree Technologies Sdn Bhd and SOLS Energy Sdn Bhd. Both companies are graduates of PETRONAS FutureTech Accelerator 2019, which aims to contribute to Malaysia’s economic future and growing domestic ecosystem.
Investment in Braintree Technologies supports robotics and artificial intelligence software development that would provide total agricultural solutions, converting non-revenue generating land into high-value crop farms via automated farming. Investment in SOLS Energy reaffirms our commitment to renewable energy as a solutions partner. It helps to expand the innovative business model that provides sustainable energy for residential and small-to-medium enterprise (SME) sectors.
PETRONAS Ventures will continue to support PETRONAS’ business growth and sustainability approach through strategic investment, partnerships and collaborations, closely in line with our Sustainability Approach, in our commitment to UN SDGs and our Statement of Purpose as a Solutions Partner.
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