Sarawak O&G projected to surpass RM60 bln in GDP by 2030, says Premier - MIDA | Malaysian Investment Development Authority
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Sarawak O&G projected to surpass RM60 bln in GDP by 2030, says Premier

Sarawak O&G projected to surpass RM60 bln in GDP by 2030, says Premier

15 May 2024

Sarawak’s Oil and Gas sector, bolstered by Carbon Capture, Utilisation and Storage (CCUS), is projected to surpass RM60 billion in gross domestic product (GDP) by 2030, says Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He highlighted that the state’s oil and gas sector has yielded significant achievements in recent years, RM10 billion last year from Petronas comprising of sales tax, dividends, and royalty.

“Sarawak has also kickstarted a promising CCUS industry,” he said in his winding-up speech during the State Legislative Assembly (DUN) sitting today.

Apart from that, he said Sarawak will have three landmark Carbon Capture and Storage (CCS) projects signed this year, namely the Kasawari-M1 project, the Lang Lebah-Golok project, and the storage of industrial CO2 emissions M3 project.

With that, he assured that the state government has developed the necessary legal and regulatory framework for the CCS sector to safeguard the rights and environmental safety of Sarawak.

“All companies wanting to develop and operate CCS in Sarawak must comply with our legal and regulatory framework, including the requirement of Environmental Impact Assessments (EIA),” he said.

He said according to the CCUS Market Global Opportunity Analysis and Industry Forecast 2023-2032, the global CCS market presents a compelling opportunity, with a projected Compound Annual Growth Rate of 13.3 per cent.

He said Sarawakian companies are uniquely positioned to capitalise on this nascent market as the region’s early movers and he hence urged them to develop their expertise in this field, establishing themselves as leaders in upcoming regional CCS projects.

“With our oil and gas, and CCUS industry activities accelerating, Sarawak Oil & Gas, Services and Equipment (OGSE) players play an important role in the success and attainment of this ambition.

“Malaysia’s OGSE sector is projected to reach RM40 billion to RM50 billion by 2030. By leveraging Sarawak’s growing oil and gas activity, local OGSE companies can partner and learn from industry leaders, propelling them to regional prominence and, ultimately, global success.

“We envision a future with Sarawak OGSE companies listed on the stock exchange, with substantial valuations comparable to international OGSE players,” he said.

Meanwhile, Abang Johari revealed that since March 2024, Petros has commenced engagements with Petronas, Upstream Gas Producers and Downstream Gas Buyers on the Distribution of Gas Ordinance (DGO) Amendment 2023, which states that Petros is the only party mandated to buy, distribute, and sell gas as the single buyer and single seller in Sarawak.

He said the appointment of Petros as state’s Gas Aggregator marked a significant step forward towards managing Sarawak’s gas resources to ensure availability of gas domestically for power generation as well as new and existing industries required to spur growth and development across the state.

“Petros and Petronas are working together to ensure a seamless transition for the Gas Aggregator role which we expect to be completed by the third quarter of 2024.

“The Gas Aggregator role will enable Petros to invest in gas infrastructure to accelerate the development of the four strategic hubs under the Sarawak Gas Roadmap which will attract more than RM100 billion of Foreign Direct Investment and Domestic Direct Investment opportunities,” he said.

Source: Borneo Post