S’wak investing RM6 bln to build ammonia and urea plant in Bintulu, says Abg Jo

KUCHING (July 22): The Sarawak government will be investing about RM6 billion for the construction of an upcoming low carbon ammonia and urea plant project in Bintulu, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He said Sarawak Petchem Sdn Bhd will be managing the project, which is still being studied.

“This is quite a large investment ranging around RM5 to RM6 billion and we still start…if possible, I would like to see negotiations commence in 2025.

“Perhaps this project can be completed in 2030 because for the whole process, it takes time,” he told a press conference after officiating the opening of Sarawak Methanol Complex in Bintulu today.

He explained that the plant would be utilised to produce ammonia needed in the shipping industry whereas the production of urea would serve as an organic fertiliser to improve the quality of soil.

“Ammonia is one of the key components to produce urea, which means we can produce our own fertiliser not only for the use of Sarawakians but also to export to markets abroad.

“This is the value chain we are developing,” he said.

He also said that the plant, which will be sited next to the Sarawak Methanol Complex, will also create chains of business between companies in Sarawak.

“For instance, Petroleum Sarawak Berhad (Petros) supplies gas to Sarawak Petchem to produce ammonia so this is a chain, but everything belongs to Sarawak,” he said.

Abang Johari earlier launched the state-of-the-art methanol complex, which showcases the adoption of a large-scale modular construction concept and the jetty wave screen technology — the first of its kind in Malaysia.

Owned and operated by Sarawak Petchem, the RM7 billion complex is capable of producing 1.75 million metric tons of methanol annually, marking another major investment in Sarawak.

Among those present were Deputy Prime Minister Datuk Seri Fadillah Yusof, Deputy Premiers Datuk Amar Douglas Uggah Embas and Datuk Amar Dr Sim Kui Hian, State Legislative Assembly Speaker Tan Sri Datuk Amar Mohamad Asfia Awang Nassar and Sarawak Petchem Sdn Bhd chairman Tan Sri Datuk Amar Abdul Aziz Hussain.