PETROS AND SARAWAK PETCHEM SIGN MOU FOR BINTULU'S LOW-CARBON AMMONIA AND UREA PLANT

Date: 22 July 2024

22 July 2024, Bintulu - Petroleum Sarawak Berhad (PETROS) signed a Memorandum of Understanding (MoU) with Sarawak Petchem Sdn Bhd (Sarawak Petchem) for the supply of natural gas to Sarawak Petchem’s Low-Carbon Ammonia and Urea Plant in Bintulu, Sarawak. This signifies PETROS’ role as the sole Gas Aggregator for Sarawak, focusing on efforts to promote greater statewide gas utilisation while supporting Sarawak’s aspiration to accelerate its development in petrochemical industry and growing its low-carbon economy.

Under the MoU, PETROS plans to supply 160 MMscfd of natural gas to the Low-Carbon Ammonia and Urea Plant in Bintulu upon the targeted completion and commissioning of the plant by 2030. Currently, the plant is undergoing a feasibility study and is expected to meet the rising demands for low-carbon energy solutions and fertilizers when it comes onstream.

Exchanging on behalf of PETROS was PETROS Group Chief Executive Officer, Dato Janin Girie, while Sarawak Petchem was represented by its Managing Director and Chief Executive Officer, Dato Mohammad Bin Haji Ibrahim. Both parties exchanged the document at the launch of Sarawak Methanol Complex in Bintulu during Sarawak Day. The exchange was witnessed by the Right Honourable Premier of Sarawak, Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari Tun Datuk Abang Haji Openg; Senior Vice President of Corporate Strategy, Abang Arabi bin Abang Narudin; SEDC Chairman Tan Sri Datuk Amar (Dr) Haji Abdul Aziz Bin Dato Haji Husain, senior management team from both organisations and industry stakeholders.

Commenting on the collaboration, PETROS Group Chief Executive Officer, Dato Janin Girie said, “This signing shows our initiatives as the Gas Aggregator for Sarawak to enable the development of high-value and strategic downstream industries leveraging on low-carbon energy solutions, in line with the State's green energy agenda to reducing carbon emission intensity for a sustainable energy future. Through this partnership with Sarawak Petchem, we also aspire to promote more high-value downstream activities and increase domestic gas usage to boost Sarawak’s economic growth.”

Meanwhile, Dato Mohammad Bin Haji Ibrahim added, “The exchange of documents in relation to the natural gas supply is essential for supporting Sarawak Petchem’s portfolio diversification strategy and its future expansion into the low-carbon ammonia and urea markets. At the same time, it also ensures a reliable supply of natural gas to the Sarawak Methanol Complex.”

The MoU reflects a shared vision of excellence and innovation between both Sarawak-owned companies committing to uphold the highest standards of environmental stewardship and sustainability. This partnership will support the progression of the State's energy transition by reducing its carbon footprint while heading towards net-zero by 2050.

MoU exchange between PETROS Group Chief Executive Officer, Dato Janin Girie (front second left) and Sarawak Petchem Managing Director and Chief Executive Officer, Dato Mohammad Bin Haji Ibrahim (front second right), witnessed by The Right Honourable Premier of Sarawak, Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari Tun Datuk Abang Haji Openg (center).

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