Petros, Sarawak Petchem partner on gas supply for low-carbon plant in Bintulu

KUCHING (July 22): Petroleum Sarawak Berhad (Petros) today signed a Memorandum of Understanding (MoU) with Sarawak Petchem Sdn Bhd (Sarawak Petchem) for the supply of natural gas to Sarawak Petchem’s low-carbon ammonia and urea plant in Bintulu.

The state-owned oil and gas company in a news release said this signified Petros’ role as the sole gas aggregator for Sarawak, focusing on efforts to promote greater statewide gas utilisation while supporting the state’s aspiration to accelerate its development in petrochemical industry and growing its low-carbon economy.

Under the MoU, Petros plans to supply 160 million standard cubic feet per day (MMSCFD) of natural gas to the low-carbon ammonia and urea plant in Bintulu upon the targeted completion and commissioning of the plant by 2030.

Currently, the plant is undergoing a feasibility study and is expected to meet the rising demands for low-carbon energy solutions and fertilisers when it comes onstream.

Exchanging the MoU on behalf of Petros was its group chief executive officer Dato Janin Girie, while Sarawak Petchem was represented by its managing director and chief executive officer Dato Mohammad Ibrahim.

Both parties exchanged the document in the presence of Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg during the launch of the Sarawak Methanol Complex at Tanjung Kidurong in Bintulu.

Also present were Deputy Prime Minister Datuk Seri Fadillah Yusof, Deputy Premier Datuk Amar Douglas Uggah Embas and Datuk Amar Dr Sim Kui Hian, and Sarawak Petchem Sdn Bhd chairman Tan Sri Datuk Amar Abdul Aziz Hussain.

Commenting on the collaboration, Janin said the signing showed Petros’ initiatives as the gas aggregator for Sarawak to enable the development of high-value and strategic downstream industries leveraging on low-carbon energy solutions, in line with the state’s green energy agenda to reducing carbon emission intensity for a sustainable energy future.

“Through this partnership with Sarawak Petchem, we also aspire to promote more high-value downstream activities and increase domestic gas usage to boost Sarawak’s economic growth,” he said.

Mohammad said the exchange of documents in relation to the natural gas supply was essential for supporting Sarawak Petchem’s portfolio diversification strategy and its future expansion into the low-carbon ammonia and urea markets.

“At the same time, it also ensures a reliable supply of natural gas to the Sarawak Methanol Complex,” he added.

The MoU reflected a shared vision of excellence and innovation between both Sarawak-owned companies committing to uphold the highest standards of environmental stewardship and sustainability.

This partnership will support the progression of the state’s energy transition by reducing its carbon footprint while heading towards net-zero by 2050.