Abg Jo: Sarawak on schedule to produce methanol by January 2024 - MIDA | Malaysian Investment Development Authority
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Abg Jo: Sarawak on schedule to produce methanol by January 2024

Abg Jo: Sarawak on schedule to produce methanol by January 2024

31 Jan 2023

Sarawak is on schedule to produce its own methanol for the open market by January, next year, said Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He said the Sarawak Petchem methanol plant in Tanjung Kidurong is in its final stage of development and will start its trial run in April, this year.

“If it goes as planned, Sarawak will commission methanol production in January 2024,” he told reporters after his working visit to the methanol plant today.

The methanol plant, once in full operation, is capable of producing 5,000 metric tonnes per day or 1.7 million tonnes per year of methanol.

Abang Johari said the methanol plant would also be equipped with a dedicated jetty to allow international tankers or ships to bring methanol to the market.

“We have been able to train the workforce for a relatively sophisticated industry such as petrochemicals,” he added.

The Premier said the 5G network coverage will also be developed in this industrial area.

“Now we have installed 5G in several areas, by 2024 the whole of Kidurong, Samalaju and parts of Bintulu will be upgraded to 5G, with the hope of being able to upgrade to a higher speed.

“This is an important area for Malaysia’s economy, even more so for Sarawak,” he added.

Abang Johari said during a briefing earlier, he was informed a second methanol plant will be built once the first plant is fully developed.

“From the point of view of financing, we have prepared everything, this (methanol plant 2) is a private sector investment, not the government.

“The financial institutions, have high confidence in the efforts of the downstream gas industry in Sarawak,” he added.

Abang Johari believed the future of Sarawak’s oil and gas downstream industry is bright considering that eight out of the 10 new gas areas that were discovered by Petronas are located in Sarawak.

“I believe our feedstock is sufficient, what we need is to use new technology to encourage downstream activities for the petrochemical plant.

“We will develop the petrochemical hub in stages, we will not develop it like in Pengerang but with the will to invest, but we will provide the infrastructure in stages,” he said.

During the event, Abang Johari also presented the certificates of appreciation to six companies for achieving 10 million safe manhours without lost time injury incident on Jan 27 at the Sarawak methanol project.

The six companies were Samsung Engineering Malaysia, China Communications Construction Company (M) Sdn Bhd, Rahabco Engineering and Construction Sdn Bhd, See Energy Sdn Bhd, Syarikat Caya Daya Sdn Bhd and WZS Misi Setia Sdn Bhd.

Among those present were Minister of Utility and Telecommunication Datuk Julaihi Narawi, Minister in the Premier’s Department Datuk John Sikie Tayai, Deputy Minister of Infrastructure and Port Development Dato Majang Renggi, Sarawak Petchem Sdn Bhd chairman Tan Sri Datuk Amar Abdul Aziz Dato Husain,  Deputy State Secretary (Economic and Development Planning) Datu Dr Muhammad Abdullah Zaidel, Murum assemblyman Kennedy Chukpai Ugon, Jepak assemblyman Datuk Talib Zulpilip, Tanjong Batu assemblyman Johnny Pang and Bintulu Resident Nyurak Keti.

Source: The Borneo Post