Petronas to supply gas to Sarawak Petchem, Sarawak Energy Bhd - MIDA | Malaysian Investment Development Authority
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Petronas to supply gas to Sarawak Petchem, Sarawak Energy Bhd

Petronas to supply gas to Sarawak Petchem, Sarawak Energy Bhd

22 Aug 2022

Petroliam Nasional Bhd (Petronas) will supply natural gas to Sarawak Petchem Sdn Bhd (SPSB) and Sarawak Energy Bhd (SEB) from next year with the development of a gas delivery facility in Tanjung Kidurong.

The Bintulu Additional Gas Sales Facility (BAGSF-2), sited on 70 hectares of land with its own dedicated administration building, processing area, metering stations and utilities, is designed with a capacity to deliver up to 390 million standard cubic feet of gas per day (mmscfd), Petronas said in a statement.

Sarawak Premier Tan Sri Abang Johari Openg officiated the groundbreaking ceremony for the facility here, today.

The facility will deliver 160 mmscfd of natural gas to a Sarawak Government-owned methanol plant, currently under construction at Tanjung Kidurong, and which will be operated by SPSB.

Another 70 mmscfd will be supplied to SEB’s Tanjung Kidurong Power plant while the remaining capacity will be supplied to future customers.

Petronas president and group chief executive officer Datuk Tengku Muhammad Taufik Tengku Kamadjaja Aziz said the development of BAGSF-2 marked another significant milestone in the national oil company’s commitment to working together with the Sarawak government for the sustainable growth of its oil and gas industry.

“Once onstream, BAGSF-2 will create new value-adding activities for Sarawak’s hydrocarbon resources, supporting the state’s aspiration for its petrochemicals and domestic power industry.

“We look forward to building on the strong partnership with the state government in developing Sarawak’s resources for the mutual prosperity of the state and the nation,” he said at the event.

In 2016, Petronas signed an agreement with the Sarawak government to supply a total of 450 mmscfd of natural gas to the state for power generation and state-owned petrochemical industries. Last year, the national oil company signed another Memorandum of Understanding to increase the supply to 1,200 mmscfd to Sarawak.

Petronas and the Sarawak state government also commemorated their strategic collaboration achievements in the development of the oil and gas industry in Sarawak.

The event was held on the sidelines of the Sarawak-Petronas Annual Strategic Dialogue 2022 here, which is a key platform to strengthen collaboration between Petronas and the state government in the oil and gas industry.

Through this platform, both parties are committed towards enhancing a stable, conducive business and investment environment for the industry’s sustainable growth in the state.

Also present were Petronas chairman Tan Sri Mohd Bakke Salleh and Deputy Premiers of Sarawak Datuk Amar Awang Tengah Ali Hasan and Datuk Seri Dr Sim Kui Hian.

Source: Bernama