Sunday, September 19

Petronas to invest RM15 bln in next 5 years to boost LNG production

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KUCHING: Petronas is planning to invest some RM15 billion in the state over the next five years to increase the production of liquefied natural gas (LNG), says Malaysia LNG Group of Companies (MLNG) managing director and chief executive officer Zakaria Kasah.

Speaking at the launching ceremony of Biodiversity, Environment and Conservation (Beacon) project on Friday night here, he said Petronas, through its subsidiary MLNG, would implement more than 10 capital projects in Bintulu within the next five years.

“One of the projects is the Train 9 project, which is a new LNG processing plant with a capacity of 3.6 million tonnes per annum (MTPA). This new processing train will be able to increase Petronas LNG Complex (PLC) production capacity to 29.3 MTPA by 2016 from 25.7 MPTA currently.”

MLNG would also undertake various plant improvements and value creation projects in the PLC to sustain and enhance its production capacity, added Zakaria.

He said with the increase in the LNG production, it would help to increase the state’s revenue as the demand of LNG, which is viewed as a more cost-effective and cleaner source of energy, is in the rise.

The 276-hectare PLC currently produces 25.7 million tonnes of LNG per year and contributing to some 40.5 per cent to Sarawak’s gross export, 6 per cent to Malaysia’s total export and 4.2 per cent to the national Gross Domestic Product (GDP).

On the Beacon project, which is in collaboration with Sarawak Forestry Corporation Sdn Bhd (SFC), Zakaria said it consisted of two components – the Reef Ball project and the Conservation, Education, Promotion and Awareness (CEPA) programme.

“Beacon project’s total expenditure, with the two components combined over the period of eight years, is estimated to reach RM8 million.”

MLNG would invest RM4.6 million to deploy 1,500 reef balls off the coast of Similajau National Park commencing June, Zakaria said, adding that the park is located a few kilometres away from Petronas LNG Complex in Tanjung Kidurong, Bintulu.

“In years down the line, these reef balls haven will be able to protect shorelines, local fishermen fishing grounds, creating sanctuaries for marine life, conserve marine mammals such as turtles and creation of reefs for marine habitats.”

While the Cepa programme would comprise activities such as supporting the coastal areas habitat and marine life, aerial and marine surveys, education outreach programme with students and the establishment of Beacon Interpretation Centre at Similajau National Park, said Zakaria.

He stressed that the Beacon project showed the commitment of Petronas in environment conservation and such commitment would be continued to ensure a sustainable future for the state.

Second Resource Planning and Environment Minister Datuk Amar Awang Tengah Ali Hassan, who represented Chief Minister Pehin Sri Abdul Taib Mahmud, officiated at the launching ceremony.