MAG is first aviation organisation in Malaysia to ink SAF offtake agreement with PETRONAS

KUALA LUMPUR: Malaysia Aviation Group (MAG) has become the first aviation organisation in Malaysia to sign a sustainable aviation fuel (SAF) offtake agreement with Petronas Dagangan Bhd (PDB) as part of collaborative efforts to make the SAF production available in Malaysia at a commercial scale.

In a joint statement today, the entities said 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.

MAG group chief sustainability officer Philip See said that the agreement to purchase neat SAF from PDB reiterates MAG’s commitment to minimise the environmental impact, and for the betterment of the industry, nation, and future of the planet.

"Moving forward, we target to introduce SAF on selected scheduled services gradually from 2027 onwards,” he said.

Meanwhile, PDB managing director and chief executive officer Azrul Osman Rani said the collaboration offers the company an opportunity to capitalise on Petronas' entire value chain in 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,” he said.

The 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 the 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,” the statement said. - Bernama