Norway-Sarawak cooperation to develop floating LNG Kuching

MUKAH, 3 Oct: Sarawak's cooperation with energy companies from Norway opens up space for the development of floating liquefied natural gas (LNG) technology in Kuching via Sarawak Petroleum Berhad (PETROS), with the facility expected to start supply in 2029.

Sarawak Prime Minister, Datuk Tinggi Tan Sri Abang Johari Tun Openg said the talks with the Norwegian company have been going on for over a year, with the cooperation focusing on expertise and experience in floating LNG management.

"We've been talking to the Norwegian company for over a year. The company has over 50 years of experience in managing floating LNG including ships, tanks and LNG can be placed there.

"Moreover, we can also distribute LNG from ships to the mainland or to those who want to buy LNG in small quantities. This cooperation has already been signed with Norway", he told reporters during a press conference after completing the inaugural Sarawakku Sayang (SKS) Session here today.

According to him, the development is part of plans to develop a low-carbon complex and deep harbour in Tanjung Manis.

He stressed that the effort also takes into account the need to process gas sources for products with higher added value, in addition to gas price factors.

"According to the PETROS program, we will start supplying floating LNG in 2029 at Kuching and it is part of a low-carbon complex as well as deep port that we are building at Tanjung Embang.

"I think this is a good development for the future. Even though we have gas, the price factor is also important and we can process it into products with high added value", he explained.

Johari said that Sarawak also intends to set up a small-scale LNG plant using the feedstock available in the state, besides utilizing regasification technology to process gas for waste sector use.

On 1 October, PETROS announced the signing of a Joint Development Agreement (JDA) with Norwegian maritime energy infrastructure company Höegh Evi.

The strategic cooperation aims to jointly develop, own and operate LNG Kuching, which will be Sarawak's first LNG regasification facility. - TVS