Reducing oil & gas methane emissions in Malaysia: progress and workforce implications

Executive summary

This study assessed the progress of methane-reduction initiatives in Malaysia’s oil and gas (O&G) sector and the resulting workforce implications. The key findings indicate that meaningful reductions to O&G methane emissions have been achieved by focusing on upskilling, reskilling and job-scope expansion. However, opportunities exist to diversify methane-abatement approaches and achieve Malaysia’s net-zero ambitions as well as Global Methane Pledge commitments while evolving the workforce to meet the needs of the energy transition. 

• Methane is a more potent greenhouse gas than carbon dioxide, causing 30 times more warming over 100 years and 83 times more over 20 years.
• Malaysia’s long-term methane emissions increased by 34% from 2000 to 2023, but this growth has dampened to 11% since 2010 and further declined to -4% since 2020. The waste sector was Malaysia’s largest methane source in 2021 at 53% share, followed by O&G at 36%.
• Malaysia has signed the Global Methane Pledge, committing to a 30% reduction in methane emissions by 2030. Petronas leads efforts for the O&G sector, targeting reductions in its groupwide natural gas value chain of 50% by 2025 and 70% by 2030. At the national level, Petronas aims to cut methane by 50% for Malaysia’s natural gas value chain by 2030.
• Fig. ES1: Malaysia’s energy sector methane emissions reduced by 21% from 2019 to 2021. Projections suggest that the 2030 target will be met.