OGSE Sector To Embrace Malaysia's Energy Transition Agenda, Says MOGSC
By Engku Shariful Azni Engku Ab Latif and Durratul Ain Ahmad Fuad
KUALA LUMPUR, June 17 (Bernama) – The domestic oil and gas services and equipment (OGSE) sector is set for continued growth as Malaysia accelerates its energy transition, as outlined in the National Energy Transition Roadmap (NETR).
Malaysian Oil, Gas and Energy Services Council (MOGSC) president Syed Saggaf Syed Ahmad said the OGSE sector remains relevant as its services are still required to support carbon capture and storage (CCS) projects, even amid the growing focus on clean energy. “The OGSE sector is ready to support the national energy transition agenda, and industry players have already participated in Petronas’ CCS Kasawari construction,” he told Bernama after a panel session titled 'Decarbonising Malaysia' at the Energy Asia 2025 conference here today.
Syed Saggaf said ongoing CCS projects, including the Kasawari project in Sarawak, continue to rely on the existing oil and gas (O&G) ecosystem. “When we talk about energy transition, it is the same ecosystem, the OGSE sector, that will drive it forward. This transition is not about starting from scratch. It must be carried out by the current ecosystem because we cannot afford to reinvent the wheel,” he added.
However, he noted that small and medium enterprises (SMEs) within the OGSE ecosystem face challenges in adopting environmental, social and governance (ESG) principles.
According to Syed Saggaf, around 80 per cent of companies in the O&G ecosystem are SMEs, many of which have varying levels of understanding of sustainability practices, making it difficult for all to immediately align with the energy transition agenda. “The MOGSC is working to ensure that everyone understands this ESG journey. For instance, we are collaborating with Petronas, which has several programmes that can be rolled out to SME companies, helping them move forward collectively on the ESG path,” he said.
-- BERNAMA