Malaysia plans to introduce a sustainable regulatory framework in Parliament this November, aiming to establish the country as a global hub for carbon capture, utilisation, and storage (CCUS).
Mohd Rafizi Ramli, the Minister of Economy, stated that with Malaysia’s existing expertise and advantages, it is time for the nation to position itself as a leader in CCUS. “Asia alone is projected to account for 50 per cent of global CCUS demand by 2050, and Malaysia has taken swift action to leverage our existing technical capabilities and major storage sites in the region,” he said.
During his speech at the official opening of the 20th Asia Oil and Gas Trade Exhibition (OGA) 2024, he expressed hopes that the bill to be presented in November would accelerate the integration of all components of the CCUS industry, making Malaysia a regional and global leader in this field.
He also mentioned that, as part of efforts to establish the country as a CCUS hub in Asia, Malaysia has signed memorandums of understanding (MOUs) with several countries to build momentum for next year’s bidding round. The net impact of this new economic paradigm is expected to create over 200,000 jobs and generate a gross value add of approximately US$250 billion over the next 30 years.
CCUS is one of six key drivers for energy transition outlined in the National Energy Transition Roadmap (NETR) launched last year. The flagship projects under the NETR are projected to attract investments exceeding RM25 billion across all six initiatives. “However, to realise the ambition of becoming a new energy hub, we will need financing of around RM1.3 trillion by 2050. The government’s allocation of RM2 billion under the National Energy Transition Facility will assist in supporting these efforts,” he noted.
Furthermore, Mohd Rafizi stated that oil demand is expected to peak in 2030, leading to a gradual reduction in fossil fuel usage. However, he indicated that natural gas is likely to remain a key foundation and will be central to the energy transition. “Indeed, Malaysia’s energy mix will see natural gas increase from 43 per cent to 56 per cent between 2023 and 2050,” he added.
Meanwhile, OGA 2024, themed ‘Empowering Progress Towards a Sustainable Energy Landscape,’ will take place from 25-27 Sept 2024, featuring approximately 2,000 companies and brands across the full value chain. Informa Markets is the main organiser of OGA 2024.
Tan Sri Abdul Rahman Mamat, Chairman of Informa Markets Malaysia, highlighted that with seven international pavilions from Germany, South Korea, Singapore, the United Kingdom, China, Italy, and India, more than 25,000 visitors from 70 countries are expected to attend the exhibition. Last year, OGA welcomed 28,530 trade visitors from 80 countries, with 50 per cent of them acquiring the latest products, services, and market information.
