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Kota Kinabalu: As the world’s energy systems undergo a historic transformation, Petroliam Nasional Berhad (Petronas) is emerging as a key voice calling for a pragmatic, inclusive and regionally grounded approach to a low-carbon future, with Asia firmly at its heart.

“Asia cannot be a passive participant in the global energy transition. It must shape its own path that reflects the realities and aspirations of its people, industries and economies,” said Petronas President and Group Chief Executive Officer Tan Sri Tengku Muhammad Taufik Tengku Aziz at Energy Asia 2025 in Kuala Lumpur. 

He said this vision underpins the company’s efforts to foster a balanced and constructive dialogue that places Asia’s interests and potential at the centre of the global energy conversation.

In recent years, the global energy landscape has been rattled by a series of overlapping crises – from the economic devastation brought by the pandemic to Europe’s energy crunch and now intensifying geopolitical tensions that threaten global trade stability. 

The volatility surrounding the Strait of Hormuz, through which nearly 20 per cent of the world’s oil supply flows, again raised fears of supply disruptions. Unpredictable price swings, trade tariffs and fragmented energy markets continue to create uncertainty.

Yet, Tengku Muhammad believes that this moment of disruption also presents a unique opportunity to reset and adapt.

“Energy is the foundation for human progress, a constant through every industrial revolution and technological leap,” he said. 

“Today, as we stand at the threshold of what some call the fifth industrial revolution, electricity demand is rising rapidly, driven in large part by artificial intelligence (AI) and the proliferation of data centres.”

He noted that global electricity demand from data centres is projected to exceed 945 terawatt hours by 2030, more than double the 2024 total, and will account for over 20pc of total demand growth. 

At the same time, environmental, social and governance (ESG) frameworks are under pressure, potentially undermining global climate goals.

“We must resist the urge to backtrack on climate commitments in the face of short-term pressures. Instead, we need to double down on balanced, context-sensitive policy frameworks that guide the sector through transition without leaving anyone behind.”

The Asia-Pacific region, he said, is central to this global shift. 

With 60pc of the world’s population – or about 4.8 billion people – Asia is home to three of the five largest global economies. It is a critical manufacturing hub, producing essential goods ranging from semiconductors to automotive components, and boasts some of the world’s busiest ports and logistics networks.

“Asia’s digital transformation is advancing at pace. Data centre capacity across the region is set to double by 2028, driven by a digitally skilled workforce and supportive policy environments,” said Tengku Muhammad.

Despite its growing economic influence, Asia accounts for only 40pc of global energy use today. At the same time, more than 350 million people in the Asia-Pacific region still have limited access to electricity, while 150 million remain entirely off-grid.

“This is unacceptable in the 21st century...although investments in renewables have increased, fossil fuels still make up over 80pc of Asia’s energy mix. This reflects the region’s dual imperatives of affordability and energy security. Any viable transition strategy must recognise and address both.”

He stressed that climate goals and energy security should not be viewed as mutually exclusive. Rather, what the world needs are practical, scalable solutions that reduce emissions while improving lives and growing economies, especially in developing nations.

“The priority today is not just to provide more energy with fewer emissions, but to do so while meeting the needs of a growing population and protecting our finite natural resources. In this equation, Asia is both the challenge and the opportunity,” he said.

With Asia’s population expected to reach 5.2 billion by 2050, the region will account for nearly half of global energy demand by mid-century.

“Meeting this demand while moving toward net zero will require an estimated US$88.7 trillion in energy investment...that investment must support both conventional and renewable energy projects to be effective.”