As the world grapples with the urgent need to balance energy security, affordability and sustainability, Petroliam Nasional Berhad (PETRONAS) is leading the charge in Asia’s transition towards a cleaner energy future through partnerships and innovation.

With a steadfast commitment to achieving net zero carbon emissions (NZCE) by 2050, PETRONAS is harnessing cutting-edge technology, digital transformation and strategic partnerships to redefine how energy is produced, distributed and consumed.

In an in-depth discussion with Ir Ts Mohd Yusri Mohamed Yusof, senior vice-president of Projects, Technology & Health, Safety, Security & Environment at PETRONAS, the company’s vision for a sustainable energy ecosystem comes to light.

Yusri underscores how PETRONAS is not only reinforcing its core oil and gas operations with lower-carbon solutions but also accelerating the adoption of renewable energy, hydrogen and digital innovations to meet the demands of a rapidly evolving energy landscape.

PETRONAS operates at the intersection of two critical roles — as Malaysia’s national oil company and a global energy player.

This dual responsibility requires a balanced approach to energy transition, ensuring that economic growth is not compromised in the pursuit of decarbonisation.

“Our Energy Transition Strategy is built on three pillars,” explains Yusri. “First, we are strengthening our core business by optimising hydrocarbon production with lower emissions. Second, we are expanding into new energy solutions, such as renewables and hydrogen, to diversify our portfolio. And, third, we are relentlessly pursuing our NZCE 2050 goal. Committed to the above, we continue to actively foster technological innovation and collaborative ecosystems to accelerate results.”

To reduce emissions from its existing operations, PETRONAS is implementing four key decarbonisation levers: electrification of assets, energy efficiency enhancements, zero routine flaring and venting, and carbon capture and storage.

At the same time, the company is investing heavily in solar, wind, green hydrogen and bio-based energy solutions to meet the growing demand for cleaner alternatives.

One of the most transformative forces in PETRONAS’ energy transition journey is artificial intelligence (AI).

The company has embedded AI across its value chain — from upstream exploration to downstream retail — enhancing efficiency, reducing costs, and minimising environmental impact but at the core, empowering its people to thrive in an increasingly disruptive digital environment.

PETRONAS’ AI journey began in 2018 with the establishment of a robust digital ecosystem, designed to scale AI applications securely and efficiently. Today, AI is deployed in multiple facets of operations:

A standout example is the Pengerang Cogeneration Plant (PCP), which was given the “Sustainable Plant of the Year 2024” award at the Asian Downstream Summit. The plant leverages AI-driven analytics to enhance operational reliability while significantly cutting carbon emissions.

At PCP, over 2 million data points were analysed with machine learning to identify inefficiencies and demand patterns. A machine learning model was developed to optimise steam turbine and let-down valve operations, enabling real-time alignment of supply with demand. This data-driven approach gave operators predictive insights to manage steam and power variations more effectively. This, among others, resulted in 80 ktpa carbon emissions reduction, contributing to PETRONAS’ Net Zero by 2050 ambition.

PETRONAS also utilised AI for emission reduction at MLNG, achieving a decrease of 200,000 tonnes of CO₂. This exemplifies the direct contribution of AI to climate action and operational sustainability.

To ensure structured and ethical AI deployment, PETRONAS has set up an Artificial Intelligence Centre of Excellence (AI CoE) in 2022, which oversees governance, use-case implementation, and workforce upskilling.

“AI is not just a tool — it’s a strategic enabler that empowers our people, optimises our assets and positions us as a leader in the future energy landscape,” Yusri emphasises.

For PETRONAS, AI is also a catalyst in significantly advancing operations—fundamentally redefining how the many disciplines operate, create value, and deliver outcomes. By leveraging AI, PETRONAS strives to move beyond incremental improvements to architect future-ready business models that unlock new value.

Equally important, PETRONAS is nurturing an AI-ready workforce through inclusive in-house programmes that facilitate data-backed innovation at all levels. These programmes are open to all employees, regardless of role or background, underscoring our commitment to accessibility, capability-building, and innovation.

While PETRONAS has built a strong internal innovation framework, the company recognises that no single entity can drive the energy transition alone. Instead, it actively fosters partnerships with governments, academia, technology providers and industry peers to accelerate sustainable solutions.

From clean hydrogen and cross-border renewable energy trade, to digital transformation and technology co-development, PETRONAS is working with a wide network of partners to unlock synergies and accelerate impact across the energy value chain.

One of PETRONAS’ recent collaborative initiatives is the Hybrid Hydro Floating Solar and Green Hydrogen Hub Development, a strategic collaboration with Tenaga Nasional Berhad (TNB), levaraging on the current partnership between TNB’s power generation subsidiary TNB Genco Sdn Bhd and Terengganu Inc at Kenyir Lake. This project aims to support Malaysia’s aspiration to become a regional leader in green hydrogen production, in line with the National Energy Transition Roadmap (NETR) and Hydrogen Economy and Technology Roadmap (HETR), while spurring socio-economic growth in Terengganu.

The hub will integrate round-the-clock renewable energy generation, as well as production of hydrogen and its derivatives such as green ammonia and methanol. It will also leverage PETRONAS’ existing infrastructure, including carbon capture, utilisation and storage (CCUS) facilities, to ensure a holistic low-carbon value chain.

This partnership converges TNB’s power expertise with PETRONAS’ energy capabilities to create a dynamic, future-ready energy ecosystem, adds Yusri.

“It’s a testament to how collaboration can drive both national energy security and regional decarbonisation.”

PETRONAS is also pioneering regional energy integration through a joint development agreement with key corporations in Vietnam and Singapore to explore the export of renewable electricity from Vietnam’s offshore wind farms.

The collaboration brings together MY Energy Consortium (a partnership between PETRONAS and TNB), PetroVietnam Technical Services Corp (PTSC), a member of Vietnam National Industry – Energy Group (Petrovietnam) of Vietnam, and Sembcorp Utilities Pte Ltd, a wholly-owned subsidiary of Singapore-based Sembcorp Industries (Sembcorp). The landmark initiative aligns with the Asean Power Grid vision, positioning Malaysia as a key enabler of clean energy trade across Southeast Asia.

“Together, these consortia will focus on unlocking Vietnam’s rich renewable energy resources — particularly offshore wind power — as a source of green electron generation and to supply clean electricity across borders. This alliance reflects the growing momentum towards a regionally integrated ASEAN Power Grid,” notes Yusri.

Digital transformation is a cornerstone of PETRONAS’ strategy, and collaborations with technology companies on driving energy innovation, low-carbon technologies, and AI ecosystem among others, are accelerating this shift.

“Building alliances is not just about technology — they’re about building a sustainable digital backbone for the energy sector to bring about a sustainable future for our stakeholders,” Yusri explains.

A successful energy transition requires skilled talent, and PETRONAS is addressing this point through the PETRONAS Energy Transition Academy (P-ETA).

Established in collaboration with the Energy Institute (EI), P-ETA offers specialised programmes in carbon management, hydrogen, renewables and circular economy practices.

“We are equipping the next generation of energy professionals with the expertise to lead in a low-carbon world,” says Yusri. “This is critical for ensuring that Malaysia remains at the forefront of the global energy transition.”

As part of its commitment to a just and equitable transition, PETRONAS is also investing in broader upskilling and community development programmes — helping Malaysians across all levels of society seize new opportunities emerging from the energy transition. Looking ahead, PETRONAS is advancing several game-changing technologies to meet its NZCE 2050 target:

Carbon capture and storage (CCS): Positioning Malaysia as a regional CCS hub by leveraging its geological storage potential;

Bio-based and circular economy solutions: Expanding into sustainable chemicals and waste-to-energy innovations;

Renewable energy at scale: Scaling up solar, wind and hydropower while exploring geothermal and tidal energy; and

Green mobility: Expanding EV charging networks with cross-border roaming access.

PETRONAS’ message is clear: The energy transition cannot be achieved in isolation. It requires unified efforts from governments, industries and communities to drive meaningful change.

“Every decision we make today will shape the energy systems of tomorrow,” Yusri concludes. “Thus, our rallying call is clear: Let us unite with purpose, commit to tangible actions, and lead the change — because delivering Asia’s net zero is not just an ambition; it’s a responsibility we all share.”

Through technological empowerment, strategic collaborations and a commitment to inclusive growth, PETRONAS is proving that the energy transition is not just a challenge — but an opportunity to redefine the future. By emphasising that technology and innovation serve to enrich lives for a sustainable future, the company is setting a benchmark that rallies widespread support from like-minded partners to effectively advance a just energy transition for Asia and beyond.

As PETRONAS continues to innovate and collaborate, its journey serves as a blueprint for how energy companies can thrive in a decarbonising world — balancing profitability with planetary responsibility. The road to net zero is complex, but with vision, innovation and collective effort, PETRONAS is paving the way forward.