Premier: Ammonia plant in Bintulu to address global demand - MIDA | Malaysian Investment Development Authority
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Premier: Ammonia plant in Bintulu to address global demand

Premier: Ammonia plant in Bintulu to address global demand

18 Sep 2023

Sarawak is embarking on the production of ammonia in view of global demand for the renewable gas, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He said an ammonia plant will be set up in Bintulu in addition to the state’s first methanol plant in Tanjung Kidurong.

“I have requested Sarawak Petchem Sdn Bhd to review the use of the second plant, which was initially intended as a second methanol plant.

“But since we now have a methanol plant, we shall now use the second plant to produce ammonia,” he said at the Bintulu Additional Gas Facility – 2 (BAGSF-2) First Gas Readiness Ceremony in Bintulu today.

He said the decision to produce ammonia was because of the growing global market for ammonia, particularly in Europe and the Far East.

“I have requested Sarawak Petchem to set up the ammonia plant in Bintulu where they will produce blue ammonia.

“This is something new and I believe that if you calculate the returns on this investment, more or less, it is quite guaranteed so long as you know how to market your product.

“I hope the gas we have here will be sufficient to produce blue ammonia for the market,” he said.

In his speech, Abang Johari said BAGSF-2’s ability to deliver the gas as it is meant to be, underscores greater things to come for both the petrochemical and power industries in Sarawak.

“BAGSF-2 is designed with the capacity of 390MMscf/d and will deliver 160 million standard cubic feet per day (MMscfd) to Sarawak Petchem and another 70 million standard cubic feet per day to Sarawak Energy Berhad’s power plant right here in Tanjung Kidurong.

“As the petrochemical and power industries are two important ways for Sarawak to achieve our Post Covid-19 Development Strategy 2030, I am keen to see the growth of these two sectors contributing towards the creation of jobs in Sarawak, keeping with our plan to see the workforce expand close by 195,000 jobs, while narrowing the developmental gaps between urban and rural Sarawak,” he said.

He also said that with improved access to energy, the state can accelerate its digital adoption, allowing for a better ease of doing business, better develop the people and optimise the use of Sarawak’s assets.

The Premier thanked Petronas, Sarawak Petchem, and Sarawak Energy Berhad for the commitment shown in getting BAGSF-2 ready for first gas in just over a year.

“I hope that we each take on the responsibility of delivering the best of our abilities to seeing BAGSF-2 become fully operational.

“Your individual efforts will help ensure these industries continue to be healthier contributors to Sarawak,” he said.

Among those present were Deputy Premier Datuk Amar Awang Tengah Ali Hasan; Food Industry, Commodity and Regional Development Minister Dato Sri Dr Stephen Rundi Utom; Minister in the Premier of Sarawak’s Department Datuk John Sikie Tayai; Deputy Minister of Energy and Environmental Sustainability Dr Hazland Abang Hipni; Sarawak Petchem chairman Tan Sri Datuk Amar Abdul Aziz Husain; Satok assemblyman Dato Ibrahim Baki, who is also Petronas non-independent non-executive director; and Malaysia Petroleum Management senior vice president Mohamed Firouz Asnan.

Source: Borneo Post