BINTULU, August 8, 2024 – The oil and gas (O&G) sector plays a vital part in Malaysia’s economy, contributing approximately 20 per cent to the nation’s gross domestic product (GDP), according to the Malaysia Investment Development Authority.
The sector’s ecosystem comprises more than 3,500 O&G businesses in Malaysia, including international oil companies, support and service providers, as well as manufacturers.
As such, it is imperative that local O&G players accelerate their digital transformation through technologies, such as 5G, to maintain their competitiveness in an increasingly challenging energy market.
Minister of Digital, YB Gobind Singh Deo emphasised the role of 5G technology in various sectors, including O&G.
“5G is among the key technologies that is gaining importance. The technology, which offers ultra-high speed coupled with low latency communication between control hubs, production sites and vessels, helps to streamline the growing complexity in operational activities,” Gobind said.
“Increased use of 5G-enabled intelligent systems such as industrial IoT, drones, robotics, extended reality (XR), and artificial intelligence (AI) enhances operational efficiency and safety”.
Gobind said this at a ceremony inaugurating the deployment of a private 5G network at the PETRONAS LNG Complex in Bintulu, Sarawak. This deployment is a collaboration between PETRONAS and Telekom Malaysia (TM), and is supported by Digital Nasional Berhad (DNB).
The event was attended by the Sarawak Deputy Minister of Utilities and Telecommunications, Datuk Liwan Lagang; Encik Abang Yusuf Abang Puteh, Senior Vice President, LNG Assets, Gas and Maritime Business, PETRONAS; Mohamed Syazwan Abdullah @ Laga Jenggi, Managing Director and Chief Executive Officer, PETRONAS Malaysia LNG Group of Companies; Amar Huzaimi Md Deris, TM Group Chief Executive Officer; and DNB Chief Strategy Officer, Datuk Ahmad Zaki Zahid.
Following the historic launch of Malaysia's first private 5G network for enterprise at PETRONAS’ Regasification Terminal Sungai Udang (RGTSU) Melaka in 2022, the new Bintulu site is one of four locations equipped with the technology.
The PETRONAS LNG Complex is the world’s third largest liquefied natural gas (LNG) plant in a single location, with a production capacity of 29.8 million tonnes per annum. Deployment of the 5G network is expected to improve productivity and increase operational efficiency, and safety across critical production processes.
Gobind added that the adoption of 5G technology in the O&G sector globally is growing steadily.
“According to a ResearchAndMarkets.com report, while specific adoption rates can vary, the global market for 5G in oil and gas is expected to grow at a compound annual growth rate (CAGR) of nearly 26 percent from 2023 to 2030. Energy companies around the world are racing to modernise their operations, and I applaud PETRONAS, TM and DNB for taking the lead in digitalising Malaysia’s energy sector.”
Gobind also said the ongoing effort to accelerate 5G adoption among various enterprises is crucial for Malaysia’s digital transformation.
“I am happy to note that more and more Malaysian enterprises, from large multinational corporations to SMEs, are discovering how 5G can enable a multitude of digital solutions to improve productivity and increase operational efficiency and safety across critical production processes,” he said.
“We are seeing the development of private 5G networks and use cases undergoing proof-of-concept trials within the manufacturing, transportation and logistics industries, among others. 5G is also powering smart city solutions in municipalities and townships such as Putrajaya.
“DNB, an agency under the Ministry of Digital, continues to actively advocate the adoption of 5G technology among enterprises, through collaborations with industry associations such as the Federation of Malaysian Manufacturers, as well as international technology and telecommunications companies.
“Such efforts truly align with the Ministry of Digital and the MADANI government’s vision to transform Malaysia into a digital nation,” he added.
