KUALA LUMPUR: 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 Minister of Economy Mohd 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.
"And given that Asia alone will make up 50 per cent of global CCUS demand in 2050, Malaysia has taken swift action to capitalise on our inherent technical capabilities and region-leading storage sites.
"I hope the (bill) that we will table in November will speed up all components of the CCUS industry to come together to position Malaysia as a regional and global leader in CCUS," he said in the keynote address and official opening of the 20th edition of the Oil and Gas Asia (OGA) 2024.
Mohd Rafizi said as part of the ambition to be a regional CCUS hub in Asia, Malaysia at the same time has been signing memorandums of understanding (MOUs) with several countries to build momentum for next year's bidding round.The net effect of this new economic paradigm would be the creation of over 200,000 jobs and about US$250 billion in gross value-add for the next 30 years.
The CCUS, he noted, is just one of the six energy transition levers under the National Energy Transition Roadmap (NETR) launched last year. The flagship projects alone under the NETR are expected to bring in over RM25 billion in investments across each of these six levers. "However, to realise our ambition of being a renewable energy hub requires about RM1.3 trillion in financing by 2050.The government's allocation of RM2 billion under the National Energy Transition Facility will help to incentivise this," he added.
In his address, Mohd Rafizi noted that oil demand would peak in 2030, causing a "phasing down" effect on fossil fuel reliance. However, he said natural gas would continue to be a mainstay and would be a lynchpin for energy transition. "In fact, Malaysia's own energy mix will see natural gas grow from 43 per cent to 56 per cent between 2023 and 2050," he said.
Meanwhile, OGA 2024, with the theme 'Powering Progress Towards a Sustainable Energy Landscape', is being held from Sept 25-27, 2024 featuring 2,000 companies and brands across the full value chain, backed by a prominent line-up of industry and government partners.
"With seven international pavilions from Germany, South Korea, Singapore, the United Kingdom, China,Italy and India, we are expecting at least 25,000 visitors from 70 countries," said Informa Markets Malaysia chairman Tan Sri Abdul Rahman Mamat. Informa Markets is the main organiser of OGA 2024.
Last year, OGA chalked up a record-breaking attendance of 28,530 trade visitors from 80 countries with 50 per cent of them sourcing new products, services and the latest market information.
For updates on OGA 2024, visit us at www.oilandgas-asia.com.