Sarawak Gas Roadmap expected to attract over RM100 bln investments in next decade, says Deputy Premier

KUCHING (May 15): The Sarawak Gas Roadmap comprising strategic hubs in Miri, Samalaju, Bintulu, and Kuching is expected to attract over RM100 billion worth of investments in the next 10 years, said Deputy Premier Datuk Amar Awang Tengah Ali Hasan.

To promote greater growth in domestic gas statewide, he said state-owned oil and gas company Petros is investing RM4 billion in Bintulu, Samalaju, and Miri hubs in the next three years.

“RM100 million to deliver gas to Bintulu town by expanding the trunkline and gas network. The project is expected to benefit more than 28,000 households, as well as commercial and industrial customers,” the International Trade, Industry and Investment Minister said in his ministerial winding-up speech at the State Legislative Assembly here today.

Another RM1 billion will be invested in the Samalaju Pipeline (SPL) project to build a 65km pipeline to transport natural gas from Bintulu to Samalaju Industrial Park.

“The project Engineering Procurement Construction Installation and Commissioning Contract was awarded in December 2023 and is currently under the detailed design phase. The SPL project is on track for the first gas in Samalaju industrial park by the end of 2025,” he said.

Awang Tengah said RM2.5 billion will also be invested to develop the 500MW Miri combined cycle gas turbine power plant, which is expected to be commissioned by the fourth quarter of this year.

It will connect to Sarawak Energy’s Tudan substation to supplement energy demand for northern Sarawak.

“Petros continues to be actively involved in upstream activities especially in rejuvenating onshore exploration and commercialisation. To date, Petros is already participating in 18 Sarawak blocks.”

Awang Tengah said the Rosmari and Marjoram integrated oil and gas project is the first deepwater gas field in Sarawak developed by Sarawak Shell Berhad and the project is expected to contribute up to 20 per cent of gas supply in Sarawak.

“It is designed to produce 800 million standard cubic feet of gas per day and is expected to start operations in 2026.”

For the Bintulu Additional Gas Sales Facility (BAGSF-2), which has commenced delivery of feed gas to Sarawak’s first methanol plan, Awang Tengah said the methanol plant is expected to start commercial operation in July next year and it will receive up to 160 million standard cubic feet of gas per day.

The Deputy Premier said Petros is working with Petroliam Nasional Berhad (Petronas) to convert M1 depleted gas field into the first and biggest carbon capture, utilisation and storage (CCUS) project in Malaysia for the development of Kasawari gas field.

“Investment in CCUS will support sustainable industrial growth and create new economic opportunities while addressing carbon emissions, including the oil and gas sector,” he said.

Awang Tengah said new investments in green economy to achieve net-zero carbon footprint have resulted in employment opportunities for more than 23,000 locals with annual wages of RM1.3 billion, contributing RM6.3 billion to the local economy earning, and exported products worth more than RM24.3 billion.

Touching on the shipbuilding industry in Sarawak, Awang Tengah said Sarawak is the heartland of Malaysia’s shipbuilding and ship repair industry, with 68 out of the 100 shipyards countrywide located in the state.

“In 2023, the shipbuilding and ship repair industry has contributed RM562 million to Sarawak’s external trade with vessels of international standards exported to global destinations such as Indonesia, Singapore, United Arab Emirates, Russia, China, Germany, and Australia,” he added.