KUALA LUMPUR : Global energy demand is projected to nearly double by 2050, driven by population growth, industrialisation and digital expansion, according to PETRONAS President and Group Chief Executive Officer Tan Sri Tengku Muhammad Taufik Tengku Aziz. Addressing the opening of Energy Asia 2025, he called for collective, urgent, and coordinated action across the energy ecosystem to ensure a just and equitable transition that leaves no community behind.
Tengku Muhammad Taufik warned of a “polycrisis” confronting the global energy sector, citing escalating geopolitical tensions, including conflict near the Strait of Hormuz – which channels 20% of global oil supply – along with climate pressures and disruptive technological advances. These factors, he said, are reshaping global energy dynamics, introducing heightened price volatility and systemic uncertainty.
Emphasising that energy security and climate action must be approached as complementary rather than competing agendas, he noted that the Asia-Pacific region, home to 4.8 billion people, will account for half of global energy demand by 2050. To meet this rising demand while aligning with decarbonisation goals, he highlighted the need for a projected US$88.7 trillion in energy investment through to 2050.
The sharp rise in energy consumption by data centres was also underscored, with global demand expected to more than double from 415 terawatt-hours (TWh) in 2024 to 945TWh by 2030, representing over 20% of total growth in energy demand during that period.
Despite fossil fuels still comprising more than 80% of Asia’s energy mix, Tengku Muhammad Taufik said the region is well-positioned to scale up renewable capacity and decarbonisation technologies such as solar, wind, carbon capture, utilisation and storage (CCUS), and cleaner forms of natural gas.
He identified three strategic imperatives to address the region’s energy challenge: diversification of the energy mix, increased investment, and strengthened regional cooperation.
He urged governments and industry players to develop a balanced portfolio that includes lower-emissions fossil fuels, sustainable aviation fuel, biofuels, liquefied natural gas (LNG) from increasingly challenging environments, low- or zero-carbon hydrogen, and expanded renewables. At the same time, scaling investment will be crucial to ensure energy remains both available and affordable. Fostering regional collaboration, he said, will be essential to deliver a shared energy future.
Saudi Aramco President and CEO Amin H Nasser echoed these concerns, stating that the global energy transition has so far been “oversold and under-delivered”, particularly in Asia. He challenged the assumption that the shift to renewables would be swift and effortless, noting that oil demand still exceeds 100 million barrels per day with no sign of abating.
Nasser advocated for a pragmatic approach, acknowledging the central role of fossil fuels in the current energy mix while calling for improvements to reduce their emissions footprint.
Institute of Strategic and International Studies Malaysia Chairman and CEO Datuk Mohd Faiz Abdullah also stressed the importance of cooperation across ASEAN, given the region’s economic and technological diversity. He identified key barriers to a fair transition, including the need for skilled labour, enhanced financial support for less developed economies and reduction of regional imbalances.
Organisation of the Petroleum Exporting Countries (OPEC) Secretary-General Haitham Al Ghais highlighted the continued relevance of oil, estimating that the sector will require US$17.4 trillion in investment through 2050. He cautioned that efforts to mitigate climate change must not compromise energy security or affordability.
