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Bintulu facility to support major petrochemical jobs

Bintulu facility to support major petrochemical jobs

25 Sep 2023

The development of downstream petrochemical projects in Tanjung Kidurong, Bintulu will get a major boost with the coming on stream of the Bintulu Additional Gas Facility-2 (BAGSF-2).

The BAGSF-2 began delivery of natural gas to Sarawak Petchem Sdn Bhd’s methanol plant last week, and it will also support the development of other major petrochemical projects planned for the ambitious petrocehmical hub in Tanjung Kidurong.

State-owned Sarawak Petchem Sdn Bhd is expected to commence production of methanol in early 2024. The RM3.75bil plant, the first in the petrochemical hub, is capable of producing 1.75 million tonnes of methanol per annum for the export market.

According to Petroliam Nasional Bhd’S (PETRONAS) senior vice-president for Malaysia petroleum management Mohamed Firouz Asnan, the initial supply of gas from BAGSF-2 facility via a newly built pipeline provides the fuel for the commissioning of the world-scale Sarawak Petchem’s methanol plant.

With a design capacity of 390 million standard cubic feet of gas per day (MMscfd), he noted the BAGSF-2 facility would deliver 160 MMscfd of natural gas to the methanol plant and another 70 MMscfd to Sarawak Energy Bhd’s Tanjung Kidurong power plant.

The remaining capacity from BAGSF-2 will be allocated to other petrochemical projects earmarked in Bintulu under the Sarawak Gas Road Map.

Under an agreement inked between PETRONAS and Sarawak government in 2016, the national oil company will supply 450 MMscfd of natural gas to state-owned petrochemical industries and for power generation.

The agreement led to the construction of the BAGSF-2 undertaken by PETRONAS’ subsidiary PETRONAS Carigali Sdn Bhd.

In 2021, Petronas, under another memorandum of understanding with state-owned Petroleum Sarawak Bhd, had committed to increase natural gas supply to 1.2 billion scfd to support the implementation of projects under Sarawak Gas Roadmap by 2030.

“The additional supply of gas will power the future growth of Sarawak’s downstream sector, especially in Bintulu.

“We (Petronas) are honoured to be a part of this pusuit to add value to hydrocarbon resources found off the coast of Sarawak.

“This project (BAGSF-2) is a testament to our commitment to support the state’s aspiration for greater downstream development,” said Mohamed at the recent launch of BAGSF-2’s first gas readiness ceremony by Sarawak Premier Tan Sri Abang Johari Tun Openg.

Mohamed said in meeting the growing demand by its downstream customers in Sarawak, Petronas, together with its petroleum arrangement contractors, will continue to invest in developing new offshore production facilities as well as pipelines and onshore facilities to connect the gas supply to clients.

Last month, PETRONAS announced that the Timi field in Block SK318, located about 200km off the coast of Sarawak, had achieved its first gas production.

Block SK318 is operated by Sarawak Shell Bhd, with a 75% participating interest in partnership with PETRONAS Carigali (15%) and Brunei Energy Exploration (10%). The Timi field is capable of producing up to 300 MMscfd of gas.

Meanwhile, Mohamed said the development of the Kasawari gas field project in Block 316 in Central Luconia province, 200km off the coast of Bintulu, is progressing well and expected to produce first gas next year.

The Kasawari field is estimated to contain 3.2 trillion cubic feet of natural gas resources,and it expected to produce 900 MMscfd of gas and 3.5 million barrels of condensate per day when fully commissioned.

Other gas projects in the pipeline include the Rosmari-Marjoram sanctioned late last year, while PETRONAS continues to progress the studies on the giant Lang Lebah project, targetted for sanctioning in first quarter of 2024, he added.

Shell discovered gas reservoirs in the Rosmari-Marjoram gas field, which is being developed as part of Block SK318 exploration and production sharing contract,in 2014. The project is expected to be commissioned in three years.

The Lang Lebah gas field in SK410B block in central Luconia province is estimated to hold five trillion cubic feet of gas reserves.

Last Thursday, Sarawak Shell inaugurated the first first phase of the Sarawak integrated sour gas evacuation system at the Rosmari-Marjoram onshore gas plant.

Sarawak Premier Abang Johari performed the ground breaking ceremony for the onshore gas plant project.

According to Siti Hurrairah Sulaiman, country chair of Shell Malaysia and senior vice-president of upstream Malaysia, the Rosmari-Marjoram project constituted a multi-billion dollar investment, and is one of Sarawak Shell’s most substantial commitments in Sarawak.

The Rosmari-Marjoram project is designed to produce 800 MMscfd of gas.

It is one of the strategic projects to ensure a sustained gas supply to the PETRONAS Liquified Natural Gas (LNG) Complex.

According to Sarawak Shell, the gas fields will be primarily powered by renewable energy.

The offshore platform will utilise power from 240 solar panels while the onshore plant will leverage on hydropower provided through Sarawak power grid system, which is supported by Renewable Energy Certificates.

“Rosmari-Marjoram demonstrates our powering progress strategy in generating value and reducing emission through utilisation of renewable energy in a reliable, responsible and efficient manner,” said Siti Hurrairah.

Source: The Star