- Prime Minister Anwar Ibrahim announced a 43 billion ringgit ($10.1B) investment by Tenaga Nasional to modernize Malaysia’s national grid.
- Petronas will develop three offshore carbon capture and storage (CCS) facilities in partnership with global firms.
Malaysian Prime Minister Anwar Ibrahim announced on Monday, June 16, that state utility Tenaga Nasional will invest 43 billion ringgit ($10.1 billion) to upgrade the national electricity grid. He announced while opening the Energy Asia conference that the investment will support Malaysia’s ambitions in artificial intelligence (AI) and battery energy storage systems (BESS).
“This grid upgrade is critical to supporting the infrastructure demands of a digital and energy-secure future,” Anwar said.
In a parallel push toward decarbonisation, state energy giant Petronas will develop three carbon capture and storage (CCS) facilities in Malaysia’s offshore waters. These projects are designed to serve the oil and gas industry and other hard-to-abate sectors.
Anwar highlighted that Malaysia’s CCS efforts already involve more than 10 international partners, including firms from Japan and South Korea and energy majors like TotalEnergies and Shell. Additionally, Petronas is collaborating with Eneos, Mitsubishi, and JX Nippon to explore transporting carbon dioxide from Tokyo Bay to Malaysia for storage.
“CCS is not just a key decarbonisation strategy, it represents a potential new revenue stream for the region,” Anwar said.
Petronas CEO Tengku Muhammad Taufik Tengku Aziz added that the company is responding to soaring energy demands from AI development and data centres. Malaysia is emerging as a Southeast Asian hub for data infrastructure, with investments pouring in from global tech leaders including Microsoft, Google (Alphabet), Amazon, Nvidia, and Oracle, mainly focused on cloud services and AI-driven data centres.