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.
