Full oil, gas potential in three years
Published on: Sunday, June 11, 2023
By: Jonathan Nicholas
Afiza said in the Fourteenth and Fifteenth Plans (2031 – 2040), the country would then be looking into hydrogen with an export hub in Sarawak she described as “very promising”.
Kota Kinabalu: Sabah’s oil and gas industry may see its full potential in another three years during the Thirteenth Plan (2026 – 2030) of the National Energy Policy (NEP).This is to ensure power supply reliability in Sabah is among the Twelfth NEP (2021 – 2025) goals.ADVERTISEMENT
It also means to achieve 99 per cent electricity supply to rural areas, energy law enforcements including installation of smart meters and improved fuel economy standards for vehicles throughout the country.
Energy Division Director for the Economic Planning Unit of the Prime Minister’s Department Dr Afiza Idris said the NEP acts to balance the energy trilemma of security, affordability and sustainability being extended until 2040.
She said the Thirteenth Plan seeks to promote gas-based petrochemical and gas trading hubs, thrive the Third Party Access gas market, invest in regasification terminals and increase upstream investments to develop deep-water, marginal and sour gas fields.
“The country must adapt to the energy transition towards cleaner sources of energy…so we may reduce energy-related greenhouse gas (GHG) emissions through various low-carbon pathways Economic, Social and Governance compliance.ADVERTISEMENT
“Malaysia’s aspiration is to be a net zero GHG emissions nation as early as 2050,” she said during her talk at the Sabah Oil, Gas & Energy Conference (SOGCE) at SICC here on Thursday.
Afiza said in the Fourteenth and Fifteenth Plans (2031 – 2040), the country would then be looking into hydrogen with an export hub in Sarawak she described as “very promising”.
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“Everywhere in the world hydrogen is gaining traction. This is in addition to bioenergy where the country is the second largest producer of palm oil. Electric vehicle penetration for a domestic ecosystem would be another.
“Capitalising emerging technologies under the NEP optimises the lifespan of indigenous oil and gas resources,” she said.
Speaking after her was Shell Malaysia’s Malaysia Projects General Manager Norizah Othman who said the company could help Sabah explore ultra-deep water and extract from previously inaccessible areas.
“Malaysia is home to more than 4,000 OnG businesses including domestic, independent and service and manufacturing hubs.
“In Sabah and Sarawak itself, Shell through project link had been supporting the human capital development for skill labour in OnG industries,” she said.
However the cost of drilling infrastructure required remains high and the human power scarce.
Norizah, a Sabahan herself said there is lack of subsea maintenance engineers.
“The workforce continues to be limited but this issue can be addressed by providing adequate training that is part and parcel of our development strategy.
“What’s important is encouraging STEM in local universities. This is the first step for us to build talent in Sabah or the country.
“Environmental concerns are some challenges faced…the company has been investing in emissions reducing technology which in the long run has actually lowered expenditure,” she said.
She named the cost of drilling and infrastructure required to increase production coupled with the volatility of oil price as a few risks.
“Uncertainty in the OnG industry has been a major headache for all sectors across the world but forming a supply chain puts it away
“Technical advancement and growing global demand is a good opportunity for the OnG industry,” she said.
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