New regulatory framework on CCUS, aims to make Malaysia a global hub

The Star

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.  WATCH MORE: https://thestartv.com/c/news SUBSCRIBE: https://cutt.ly/TheStar LIKE: https://fb.com/TheStarOnline

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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.

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