Petronas allocates 5% of capex for renewable energy: CEO

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KUALA LUMPUR (Jan 23): State-owned Petroliam Nasional Bhd (Petronas) will apportion 5% of its capital expenditure (capex) for renewable energy.

Speaking to Bloomberg TV at the World Economic Forum, Petronas chief executive officer Wan Zulkiflee Wan Ariffin said efforts to incorporate renewable energy sources like solar and wind are part of "future proofing" for Petronas.

"Energy demand is growing, so all forms need to be developed," he said.

However, he emphasised his belief that oil and gas will still play a major role for the future, complemented by various other forms of energy.

"Gas demand in Asia and the Far East [is expected] to rise by 3.5%-4% each year over the next five years," he said.

Wan Zulkiflee also explained that Petronas' operations in Iraq have not been impacted by current Middle East tensions.

He added that Petronas will be structuring its plans for 2020 based on the oil price high of US$50 (RM203.26) per barrel.