Petros, Sarawak Petchem sign MOU for Bintulu’s low-carbon ammonia, urea plant

Abang Johari (back row, 4th left) and other dignitaries witness the MOU exchange between Janin (front row, 2nd left) and Mohammad during the launching ceremony of Sarawak Methanol Complex in Tanjung Kidurong, Bintulu on July 22, 2024. Photo credit: UKAS

By DayakDaily Team

BINTULU, July 22: Petroleum Sarawak Berhad (PETROS) 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, Sarawak.

According to a joint press statement by both parties, this signifies PETROS’ role as the sole gas aggregator for Sarawak, focusing on efforts to promote greater Statewide gas utilisation while supporting Sarawak’s aspiration to accelerate its development in the 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 on behalf of PETROS was PETROS 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 of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg at the launch of Sarawak Methanol Complex, Tanjung Kidurong, here today.

Also present to witness the MOU exchange were PETROS senior vice president of Corporate Strategy, Abang Arabi Abang Narudin, Sarawak Petchem chairman Tan Sri Datuk Amar Abdul Aziz Husain, and senior management team from both organisations and industry stakeholders.

Commenting on the collaboration, Janin said the MOU shows 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 reduce 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.

Meanwhile, Mohammad said the exchange of documents in relation to the natural gas supply is 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 stated.

At the same event, Abang Johari also witnessed the exchange of documents of the gas sales agreement (GSA) between PETROS and Sarawak Energy Berhad, where PETROS has been appointed as the sole gas aggregator to buy and sell all-natural gas in Sarawak.

Additionally, Sarawak Petchem has formalised its bi-partite collaboration in renewable energy with Centre for Technology Excellence Sarawak Sdn Bhd (CENTEXS) and Sarawak Energy Berhad (Sarawak Energy), respectively.

The first MOU is on the collaboration to leverage CENTEXS’ expertise and resources, particularly in renewable energy, especially on the solar sector, technology and capability
enhancement, especially on the Chargeman certification, in line with Sarawak Petchem’s growth and development strategy.

The second MOU with Sarawak Energy is for the collaboration to explore the technical and commercial feasibility of the development of wave kinetic energy at the Sarawak Petchem Jetty area.

Other documents, including operational licenses and agreements with relevant authorities, were also exchanged.

Abang Johari also witnessed the presentation of appreciation awards by Abdul Aziz to six companies that participated in the Sarawak Methanol Plant Project, namely Samsung E&A, China Communications Construction Company (Malaysia) Sdn Bhd, Rahabco Engineering & Construction Sdn Bhd, See Energy Sdn Bhd, WZS MisiSetia Sdn Bhd, and Syarikat Caya Daya Sdn Bhd.

Notable dignitaries present at the event were Deputy Prime Minister Dato Sri Fadillah Yusof; Deputy Premiers Datuk Amar Douglas Uggah Embas and Datuk Amar Dr Sim Kui Hian; Sarawak Legislative Assembly Speaker Tan Sri Datuk Amar Mohamad Asfia Awang Nassar; Federal Minister of Works Dato Sri Alexander Nanta Linggi; and Sarawak Secretary Datuk Amar Mohamad Abu Bakar Marzuki. — DayakDaily