23.8 C
Brunei
Monday, August 15, 2022
23.8 C
Brunei
Monday, August 15, 2022
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    Energy sector contributes 58.8 per cent to Brunei’s GDP in 2021, says minister

    Hakim Hayat

    The energy sector accounted for 58.8 per cent or BND11 billion of the country’s total GDP in 2021, according to a data recently released by the Department of Economic Planning and Statistics, Ministry of Finance and Economy (MoFE).

    Of this number, the oil and gas upstream sector contributed to 49.6 per cent, whereas the downstream sector for petroleum refining and chemical products and power sector contributed to another 8.4 per cent.

    Minister at the Prime Minister’s Office Pehin Datu Lailaraja Major General (Rtd) Dato Paduka Seri Haji Awang Halbi bin Haji Mohd Yussof cited these numbers in his keynote address at the opening of the ‘Energy Security and Energy Transition: Today and Tomorrow’ exhibition launched yesterday, as part of the series of events in the Brunei Energy Week in conjunction with the Brunei Mid-Year Conference and Exhibition (Brunei MYCE 2022) at the International Convention Centre (ICC), Berakas.

    The minister said the energy sector is undoubtedly a key engine for the growth and socio-economic development of Brunei, and shared a number of initiatives to boost and diversify the downstream sector, including the commencement of export of urea from Brunei’s first fertiliser plant, operated by Brunei Fertilizer Industries (BFI).

    Within the ASEAN region, he also cited a forecast from the International Energy Agency that projects primary energy demand to increase by more than two thirds by 2040, and electricity demand in the region to grow 250 per cent by 2040.

    Minister at the Prime Minister’s Office Pehin Datu Lailaraja Major General (Rtd) Dato Paduka Seri Haji Awang Halbi bin Haji Mohd Yussof

    Towards this end, he said the Department of Energy is placing great emphasis on three main areas in meeting Brunei Darussalam’s energy security needs.

    “The first is, managing our hydrocarbon resource effectively and sustainably to ensure our oil and gas sector remains stable and sustainable. Second, diversifying the country’s energy mix by promoting the use of renewable energy and encouraging the efficient and prudent use of energy.

    “And third, improving energy services that are reliable and safe to the public as well as to all sectors of the country.”

    On energy transition, he emphasised that our future growth in the energy sector must take into account issues on decarbonisation and the climate change agenda.

    Hence, he said Brunei is pacing its energy sector growth with the energy transition agenda in mind towards a low-carbon future. “On this front, Brunei Darussalam has committed to a net-zero target by 2050 during the 2021 United Nations Climate Change Conference or COP26 held in November last year.

    “In this context, natural gas, the cleanest form of fossil fuel, stands out as the most important transition fuel to support this move. Brunei Darussalam as a major LNG exporter will continue to develop its gas resources and promote natural gas in the global energy transition,” he added.

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