He said the upgrade will incorporate artificial intelligence and battery energy storage systems to build greater resilience and flexibility for the future, Bernama reported.

“We must invest in improving efficiency and reducing emissions within our existing energy systems.

“This is a formidable task, given that fossil fuels still account for nearly 80% of global supply,” he said in his keynote address at the Energy Asia 2025 conference in Kuala Lumpur today.

Anwar said Asean has already laid the groundwork for this pragmatic pathway through the Asean Carbon Capture and Storage (CCS) Deployment Framework and Roadmap.

This aims to streamline policies and facilitate the flow of capital and carbon across borders.

“Malaysia is doing its part. Earlier this year, we passed the Carbon Capture, Utilisation and Storage Bill 2025 to provide a regulatory foundation for this emerging sector.

“Petronas is leading the charge with plans to develop three CCS hubs in our offshore waters, serving not just the oil and gas sector but also other hard-to-abate industries,” he said.

Anwar said Malaysia’s CCS efforts involve more than 10 international partners, including Japan, South Korea, and global energy firms such as Total and Shell.

“Petronas is also working with Eneos Corporation, Mitsubishi and JX Nippon to explore the transport and storage of carbon dioxide from the Tokyo Bay area to Malaysia.

“This positions CCS not only as a vital decarbonisation tool but also as a promising new revenue stream for the region,” he said.

The Energy Asia 2025 conference, themed “Delivering Asia’s Energy Transition”, is being held from June 16 to 18.

The event offers a chance for Malaysia and the region to review progress on energy transition efforts and reaffirm their commitments to net-zero targets.