Akmal Nasrullah: Oil and gas here to stay even as Malaysia pushes for green energy

KUALA LUMPUR, September 3 — Despite Malaysia's push towards renewable energy, oil and gas will remain crucial for the nation's economy and energy security, according to Economy Minister Akmal Nasrullah Mohd Nasir. Speaking at the Oil and Gas Asia Convention, Nasir highlighted natural gas as a vital transitional fuel, supporting power generation, industry, and system reliability as renewables expand.

Currently, natural gas constitutes 42% of Malaysia's primary energy supply, followed by crude oil and petroleum products at 33%, coal and coke at 22%, and hydropower and renewables at 4%. The government's National Energy Transition Roadmap (NETR), initiated under the Anwar administration, aims to accelerate the shift towards clean energy through targeted investments in renewable energy, hydrogen, energy storage, and natural gas infrastructure by 2050.

While acknowledging the nation's oil and gas wealth, Nasir cautioned against over-reliance on any single energy source, emphasizing the need to diversify options and mitigate supply risks and market disruptions, particularly in light of geopolitical tensions. Most domestic gas is produced offshore in Sabah and Sarawak and exported to East Asia, with Peninsular Malaysia relying on regasification terminals in Malacca and Pengerang, as well as pipeline imports from Indonesia, to meet domestic energy demands.