Calm exterior, but O&G sector remains on guard – Petronas

KUALA LUMPUR: The oil and gas (O&G) industry may appear calm on the surface, but it remains on guard, especially amid the current geopolitical tensions, said Petroliam Nasional Bhd (Petronas) president and group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz.

“I can’t offer conclusive statistics, but based on observed behaviour, many oil and gas leaders here have had to step out every hour to manage operations and address regional exposures.

“That does not suggest calm. In fact, it is like a duck gliding across water, calm above, but paddling furiously beneath,” he said in response to a question about the industry’s reaction to the conflict in the Middle East during a press conference today.

The press conference was held in conjunction with the second day of the three-day Energy Asia Conference 2025.

Tengku Muhammad Taufik said Petronas is closely monitoring the situation, noting that the national oil company has operations in Iraq and an active presence in the Middle East, with staff deployed in Abu Dhabi and Saudi Arabia.

“These are responsibilities that many overlook. Saudi Aramco president and chief executive officer Amin Nasser made this clear in his video message, emphasising that we should never underestimate the importance of maintaining supply availability during times of crisis. Disruptions like these can shock the entire system,” he added.

In response to another question, Tengku Muhammad Taufik confirmed that the government has initiated efforts to establish a third regasification terminal (RGT).

“While we continue to maintain a strong position in East Malaysia by exporting energy to our long-term partners and supporting their energy security, demand in Peninsular Malaysia is growing rapidly,” he said.

According to reports, Petronas has been mandated by the government to develop the country’s third RGT to ensure energy supply security in Peninsular Malaysia.

The new facility, expected to be located in Lumut, Perak, will have a capacity at least comparable to the group’s two existing RGTs in Sungai Udang, Melaka, and Pengerang, Johor.