MOSCOW (MRC) -- Malaysian state-owned energy giant Petroliam Nasional Berhad, or Petronas, has released its annual activity outlook for 2022-2024, which provides insights into industry trends, demand outlook and the upcoming activities of the company’s upstream, gas + new energy and downstream businesses, as per the company's press release.
For 2022, Petronas anticipates the path towards sustained demand recovery to remain fragile and uncertain as the oil market adjusts to both short and long-term landscapes, driven by the resumption of economic activities amidst the COVID-19 pandemic.
Petronas’ Vice President of Group Procurement, Freida Amat said: “While accelerated energy transition will create further challenges to the traditional oil and gas business, industry players must be innovative and remain cost-competitive to ensure projects and production remain feasible in the uncertain economic climate for the sustainability of the industry.”
Petronas foresees a positive outlook for drilling rigs activity and a steady outlook for fabrication of fixed structures and subsea facilities, supply of line-pipes, underwater services, as well as decommissioning activities. However, a modest outlook is expected for installation of float-over barges.
In the report, Petronas also shares insights expected to have a positive impact on the industry.
Among the highlights are:
- Petronas is pushing further for the usage of cleaner energy and pursuit for a lower carbon profile as the company ventures into hydrogen business, presenting opportunities for oil and gas services and equipment industry players.
- Petronas Ventures, as the company’s venture capital arm, will continue to drive technology innovation and maintain a competitive edge to support its core oil and business for further growth.
- Efficiency as an enabler in pursuit of maximizing assets is key to continuous improvement to operations. Highest degree of efficiency in project delivery practices enables better project outlook, creates value for the industry and maintains its competitive advantage and sustainability.
As MRC reported earlier, in January 2021, Petronas said it aims to become a net zero emitter of greenhouse gases by 2050 and also plans to increase its investments in renewable energy.
We remind that in June 2019, Petronas and Saudi Aramco started operations at their new 1.2-million-tonnes-per-year naphtha cracker. The cracker is part of the USD2.7 billion joint-venture oil refinery and petrochemical project known as RAPID - or Refinery and Petrochemical Integrated Development - located in Pengerang in the state of Johor, at the southern tip of peninsular Malaysia.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.