PETALING JAYA: The oil and gas sector is poised to benefit from structural growth in global energy demand driven by artificial intelligence (AI).
However, investors should brace for several Petroliam Nasional Bhd or PETRONAS-related developments that could create short-term volatility in the second half of 2026, according to UOB Kay Hian (UOBKH) Research.
The research house maintained its “market weight” call on the sector, saying PETRONAS has emerged stronger following a period of multiple crises and is well positioned to play an increasingly strategic role in global energy security.
It said the company’s integrated value chain and scale place it in a favourable position to support the rapid expansion of AI infrastructure, where reliable and secure energy supplies are becoming as critical as computing capacity.
It added energy security is becoming inseparable from digital growth as data centres (DCs) increasingly face electricity constraints, rather than capital shortages.
It noted that South-East Asia has seen surging demand for DC investments – with Malaysia among the key beneficiaries – but rising electricity consumption is placing pressure on existing infrastructure.
As AI adoption accelerates globally, oil majors are responding by diversifying energy sources, strengthening supply chains and investing in technologies that enhance resilience.
Against this backdrop, PETRONAS is expanding its liquefied natural gas footprint through additional supply sources in Australia and Canada.
