Sarawak to invest RM6 bln to develop low-carbon ammonia, urea plant project in Bintulu

Abang Johari speaks during the launch of Sarawak Methanol Complex at Tanjung Kidurong, Bintulu on July 22, 2024. Screenshot taken from a Sarawak Public Communications Unit (Ukas) livestream on Youtube.

By Shikin Louis

BINTULU, July 22: Sarawak will invest RM6 billion to develop a low-carbon ammonia and urea plant in Bintulu, says Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg.

“The ammonia and urea plant need an investment of RM6 billion and Sarawak will invest in that particular plant,” he announced during the launch of Sarawak Methanol Complex at Tanjung Kidurong here today.

Earlier in his speech, Abang Johari mentioned that Sarawak Petchem Sdn Bhd (Sarawak Petchem) will receive a supply of 160 million standard cubic feet per day (MMSCFD) of natural gas from Petroleum Sarawak Berhad (Petros) for the new low-carbon ammonia and urea plant project.

This is on top of the current allocated gas supply for the newly-launched Sarawak Methanol Plant Project.

“This is another downstream activity; we believe ammonia (is) a basis for us to produce urea and fertilizer is important in our agricultural sector.

“Our soil must be given the fertilizer for us to produce food products in the context of food security.

“In other words, we have our own supply of fertilizer, produced by Sarawak, to enrich Sarawak’s soil and produce food not only for Sarawak but also for foreign markets,” he added.

He further said Sarawak Petchem is currently exploring other opportunities as part of its strategy to diversify its portfolio and make green energy adoption a reality.

On Feb 21, Sarawak Petchem Sdn Bhd (Sarawak Petchem) has signed a Memorandum of Understanding (Mou) with Petronas Chemicals Group Berhad (PCG) to study the prospective development of a world-scale low-carbon ammonia and urea plant in Bintulu.

At that time, Abang Johari stated that the plant will have a future capability to produce ammonia with a very low carbon footprint which is a strategic initiative to capitalise on opportunities within the global energy transition market.

Low-carbon ammonia is mainly used in the hydrogen and power sectors for cofiring and bunkering for future sustainable ammonia applications whereas urea essentially serves as a fertiliser as well as raw material for plywood resins and adhesives apart from diesel exhaust fluids for vehicular applications. — DayakDaily