Malaysian oil-gas giant deepens LNG, clean power cooperation with Vietnam

Aimy Zairin Mohamed, a representative from PETRONAS Vietnam, told a press briefing in Ho Chi Minh City on Tuesday that energy security had become a priority for many countries amid global uncertainties, particularly the conflict in the Middle East.

Military tensions involving the United States, Israel, and Iran in the Middle East since February 27 have disrupted global fuel supplies, as about 20 percent of the world's oil passes through the Strait of Hormuz between Iran and Oman.

Cooperation between countries and energy companies is crucial to securing supplies, meeting growing demand and keeping energy prices affordable for consumers, he said.

PETRONAS and Vietnam National Industry-Energy Group (Petrovietnam) signed a strategic alliance agreement last week to expand their partnership across oil and gas exploration and production, downstream operations and low-carbon energy solutions.

Aimy said PETRONAS has more than 40 years of experience in the LNG business, alongside geographical advantages and flexible supply capabilities.

The company aims to leverage these strengths in partnership with Petrovietnam to help Vietnam strengthen its energy security.

The two sides also plan to explore cooperation in carbon capture and storage (CCS), a technology that remains relatively new in the region.

CCS is a suite of technologies that captures carbon dioxide from exhaust gases or the atmosphere.

Malaysia, Singapore join Vietnam for clean power development

PETRONAS is also joining a Vietnam-Malaysia-Singapore power interconnection project, which aims to generate renewable electricity in Vietnam for supply to regional markets.

Aimy said Vietnam has world-class wind resources, offering significant potential for the development of green electricity.

Under the proposed arrangement, clean power generated in Vietnam would be transmitted to Malaysia and Singapore.

Malaysia would serve both as an interconnection hub and as one of the destination markets for the electricity.

Beyond cross-border power transmission, the project could generate broader socioeconomic benefits by supporting electricity generation in Vietnam and developing regional energy infrastructure, he said.

PETRONAS expects the project to become part of the ASEAN Power Grid initiative, which aims to strengthen electricity connectivity and facilitate power trading across Southeast Asia.

However, efforts to advance the project remain at the cooperation-development stage.

Government-business coordination key to energy price stability

In response to a question from Tuoi Tre (Youth) online newspaper about Malaysia’s and PETRONAS’ experience in stabilizing fuel prices, amid Vietnam’s consideration of giving businesses greater autonomy over retail fuel pricing, he said policy approaches varied from country to country depending on market conditions and the structure of each nation’s energy sector.

He stressed that close coordination between governments and energy businesses was essential, particularly as tensions in the Middle East intensified.

“We have seen governments and businesses work closely together to address this issue, particularly amid rising tensions in the Middle East,” he said.

“Neither side can resolve it alone.”

Governments and stakeholders across the energy sector must coordinate at both national and regional levels to ensure energy remains affordable for consumers.

According to the PETRONAS representative, countries are facing three interconnected challenges: ensuring energy security, maintaining affordability and advancing sustainable energy development.

Cooperation between PETRONAS and Petrovietnam could draw on the respective strengths of both companies to help address these shared challenges, he said.