KUALA LUMPUR (Sept 25): While the narrative often suggests that the days of fossil fuels are numbered, Economy Minister Mohd Rafizi Ramli, however, points out that fossil fuels will remain integral to Malaysia’s energy mix well into 2050.
Speaking at the opening ceremony for Oil & Gas Asia (OGA) 2024, the minister pointed out that fossil fuels, the bulk of which is natural gas, will still account for 77% of the country's primary energy supply by 2050. Natural gas will make up 56% of the energy mix.
He stressed that natural gas is a core lynchpin in the country’s National Energy Transition Roadmap (NETR).
“The path forward lies in reducing our short-term bets on oil, strengthening our position in natural gas, and fully embracing renewables for long-term gains,” said Rafizi.
“We must not forget that (the oil and gas industry) has been at the centre of national development for decades. That has enabled countries to leapfrog in infrastructure and establish sovereign wealth funds for our future generations,” he commented.
The demand for natural gas in Malaysia is set to rise in the coming decades, driven by a pivotal role in the country’s energy transition strategy, according to Rafizi.
While global oil demand is expected to peak within the next six years, Rafizi highlighted that natural gas demand is forecasted to continue growing beyond 2030, with Asia driving much of this increase.
“Malaysia’s own energy mix will see natural gas grow from 43% to 56% between 2023 and 2050,” he said.
The minister explained that natural gas is also an enabler for the country’s energy transition.
“Not only does it (natural gas) secure our energy supply, it gives us the time to build a sustainable and robust renewable energy infrastructure,” Rafizi said.
"It is about phasing down, not phasing out, our reliance on fossil fuels, [while] at the same time, building our capacity for renewables to offset concerns about greater energy demand.
“It is part of the government's long-term strategy in view of certain hard truths in the energy space,” he added.