ENERGY SECURITY REMAINS PARAMOUNT AMID ESCALATING GEOPOLITICAL TENSIONS - PETRONAS 

KUALA LUMPUR, March 31 (Bernama) -- Energy security will remain paramount as the global energy system comes under increasing strain from escalating geopolitical tensions in West Asia, Petroliam Nasional Bhd (Petronas) said today.

Its president and group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz said if the entirely avoidable confrontation in the region unfolds in the worst possible way, many countries would directly feel the absence of energy security, if they have not already begun experiencing its impact.

“In ASEAN, a region of 700 million people, we have seen in rapid succession the Philippines declaring a state of emergency, Thailand signalling that its oil fuel fund will struggle to cope to cushion price increases, and Vietnam beginning to impose travel limitations.”

In Malaysia, while the fuel subsidy remains, the government has temporarily adjusted BUDI95 quota to 200 litres from 300 per month previously.

“(Besides this), governments across Asia are also shifting back to coal to cover LNG shortfalls,” he said in his keynote address at the Offshore Technology Conference Asia (OTC Asia) 2026 here today.

Tengku Muhammad Taufik said these developments underscored an uncomfortable dilemma, where efforts to pursue other priorities cannot come at the expense of energy security. .

He said disruptions at critical chokepoints such as the Strait of Hormuz which handles roughly 20 million barrels per day, or nearly one fifth of global oil consumption, as well as a similar share of global LNG trade could trigger compounding consequences across industries, including fertilisers and other petrochemical based products, ultimately impacting end consumers.

Tengku Muhammad Taufik added that rising costs and weakening demand signals could push the global economy towards stagflation and stressed that without a readily available, affordable and resilient energy system, a complete disruption to hydrocarbon flows would bring global activities to a halt. 

“We have seen that despite calls for an accelerated energy transition, the fact remains, and it's increasingly undeniable, hydrocarbons will continue to play a central role in energy systems not only of today, but also of tomorrow. 

“Oil and gas is still responsible for 80 per cent of global energy supply. Petrochemicals are critical inputs not only for the needs of today, for the manufacturing, but also for the manufacturing of solar PVs, as well as wind turbines," he added.

On another note, Tengku Muhammad Taufik said Petronas is working collaboratively with the local oil and gas services and equipment (OGSE) industry through its Petronas Activity Outlook to uplift the sector. 

“I have a message for the local OGSE players: it has never been more urgent to evolve so you can become more competitive and more capable in what is already a highly challenging industry,” he added.

-- BERNAMA