Sarawak poised to become strategic green fuel hub for regional shipping

Abang Johari (fifth right) receives a courtesy visit from Lachlan (fourth left) with other dignitaries at Satria Pertiwi Complex on Oct 8, 2026. Photo: Ukas

By DayakDaily Team

KUCHING, Oct 8: Sarawak is poised to become a strategic player in the region’s green shipping fuel supply chain, leveraging its established chemical and fuel industries to meet the maritime sector’s growing demand for cleaner energy.

Australian High Commission Second Secretary (Political-Economic) Lachlan McPhee said Sarawak had the industrial strengths and strategic position to contribute to the development of a low-carbon fuel ecosystem for the regional shipping industry.

He said the opportunity was strengthened by Malaysia’s position as a regional transshipment hub and Australia’s expertise in green fuel production and shipping regulation.

“We see real opportunities for cooperation between Australia, Sarawak and Malaysia in the green fuel supply chain for shipping,” he said during a press conference after paying a courtesy call on Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg at the Satria Pertiwi Complex here today.

According to a report by the Sarawak Public Communications Unit (Ukas), he said the cooperation was expanding to explore Sarawak’s role in developing a low-carbon fuel supply chain.

“We have been discussing with Malaysia and now Sarawak how to develop a low-carbon fuel ecosystem for green shipping, looking at what the shipping industry will need in the future,” he said.

According to Lachlan, the initiative had also gained momentum following the launch of the Green Bunkering Regulatory Roadmap by Transport Minister Anthony Loke during Malaysia Maritime Week recently.

He said the regulatory framework would be important in creating an ecosystem to support the use and supply of green fuels in the shipping sector.

Australia could contribute expertise in green fuel production, shipping route and operations regulation, as well as other technical areas, he added.

“With Sarawak’s highly developed chemical and fuel industries, Malaysia’s position in regional transshipment and Australia’s expertise in green fuel production, we have a strong foundation to develop this supply chain,” he added. — DayakDaily