The first delivery is expected to be delivered at KLIA in 2027 PULAU LANGKAWI, May 26 (Bernama) --
Malaysia Aviation Group (MAG) has become the first aviation organisation in Malaysia to sign a sustainable aviation fuel (SAF) offtake agreement with PETRONAS Dagangan Berhad (PDB) as part of collaborative efforts to make the SAF production available in Malaysia at a commercial scale. The initiative will further accelerate industry-wide efforts to decarbonise the aviation industry as MAG takes tangible actions on its focus to achieve net zero emissions by 2050.
This first offtake agreement will see PDB supply more than 230,000 tonnes of SAF to MAG’s airlines with the first delivery expected from 2027 at Kuala Lumpur International Airport (KLIA). The SAF will be produced at PETRONAS’ co-processing plant in Melaka and will be supplied directly to KLIA for flights operated by national carrier Malaysia Airlines, and subsequently to sister airlines Firefly and MASwings.
Philip See, Group Chief Sustainability Officer of MAG said, “This partnership agreement to purchase neat SAF from PDB reiterates MAG's commitment to minimise our environmental impact for the betterment of the industry, nation, and future of our planet. Moving forward, we target to introduce SAF on selected scheduled services gradually from 2027 onwards."
PDB Managing Director and Chief Executive Officer, Azrul Osman Rani said, “The partnership offers us an opportunity to capitalise on PETRONAS' entire value chain, which includes every facet of SAF production and distribution. Through our tailored solutions, we will work together with our partners to address their specific needs and support their growing focus on sustainability – a commitment that strongly resonates with the PETRONAS net zero aspiration.”
The agreement follows the continuation of the partnership established between MAG and PDB in 2021, where both parties explored potential collaborative opportunities to advance the sustainability agenda, including the supply and adoption of SAF at KLIA. Through this partnership, MAG has operated 19 domestic and international cargo and passenger flights powered by SAF through its group of aviation companies. MAG has been working closely with various industry partners to ensure the consistent supply of SAF across its network of stations as an increasing number of its flights have been regularly utilising SAF.About Malaysia Aviation Group
Malaysia Aviation Group (MAG) is a global aviation organisation comprising three focused business portfolios from Airlines, Loyalty and Travel Solutions (LTS) and Aviation Services.
Its current Airlines business portfolio that serves the global, domestic and segmented market comprises Malaysia Airlines – the national carrier of Malaysia, Firefly and MASwings – the regional airlines focused on serving communities across Malaysia, and AMAL by Malaysia Airlines – leading one-stop pilgrimage travel solutions centre.
MAG also focuses on Aviation Services business such as maintenance, repair and overhaul (MRO), cargo, ground handling and training that houses MAB Engineering, MASkargo – one- stop cargo logistic and terminal operations service provider, AeroDarat – one-stop ground handling solution provider and Malaysia Airlines Academy – one-stop Aviation and Hospitality Centre of Excellence.
The Loyalty and Travel Solutions (LTS) business portfolio focuses on providing end-to-end travel solutions and loyalty programs, complementing its established strength and expertise in the airline and aviation service businesses. It comprises Journify - the integrated one-stop travel and lifestyle digital platform, Enrich – the award-winning Travel & Lifestyle Loyalty Programme of Malaysia Airlines; and MHholidays and Firefly Holidays – the tour operating arm for the Group.
With the clear business portfolios, MAG is set to achieve its vision anchored on becoming Asia’s Leading Travel and Aviation Services Group, focused on delivering highly customised, end-to-end travel solutions by 2025. About PETRONAS Dagangan Berhad
PETRONAS Dagangan Berhad is the principal domestic marketing arm of Petroliam Nasional Berhad (PETRONAS), the national oil company, which holds 63.94% of its equity. Incorporated in Malaysia under the Companies Act 1965 on 5 August 1982 and listed on the Main Board of Bursa Malaysia on 8 March 1994, PDB has since established itself as Malaysia’s leading retailer and marketer of downstream oil and gas products.
The Company markets a wide range of high-quality petroleum products including motor gasoline, aviation fuel, kerosene, diesel, fuel oil, bunker fuel, lubricants, liquefied natural gas (LNG) liquefied petroleum gas (LPG) and bitumen in Malaysia.
As part of its strategy to grow its non-fuel offerings, the Company has incorporated Mesra Retail & Café Sdn Bhd in 2021, which focuses on food and beverage (F&B) business.
Since 2015, PDB has been certified as a constituent company member of FTSE4Good Index Series – a testament to the Company’s demonstration of strong environmental, social and governance practices measured against globally recognised standards.SOURCE: PETRONAS Dagangan Berhad (PDB) and Malaysia Aviation Group (MAG)FOR MORE INFORMATION, PLEASE CONTACT:Malaysia Airlines
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