State, Petronas working on Petrochemical Master Plan

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Datuk Julaihi Narawi

Datuk Julaihi Narawi

THE Sarawak government and Petronas are currently undertaking the Sarawak Petrochemical Master Plan study covering the coastal areas of the state.

Assistant Minister of Industrial Development (Investment and Promotion) Datuk Julaihi Narawi said the study will look into the technical, commercial and economic feasibility of the petrochemical development in Sarawak.

“Among others, the study is expected to identify and recommend the suitable oil and gas downstream industries that the state can explore,” he said yesterday in his reply to Aidel Lariwoo (BN – Sadong Jaya) and Ripin Lamat (BN – Lambir) during the question and answer session at the State Legislative Assembly yesterday.

He said currently 100 per cent of oil resources and 93 per cent of gas resources are exported in raw form such as crude oil and liquefied natural gas (LPG).

“It is the intention of the state government to establish a robust downstream industry to increase participation in the higher value chain and thus creating a more sustainable industry for the state amidst the declining resources.

“Gas-based petrochemical (PetChem) industry is being pursued by the state. In view of the gas composition which is high in methane content, therefore ammonia (and its derivatives) or methanol (and its derivatives) are the most viable options for the state’s PetChem industry.

“One PetChem project has been approved while the other is under consideration,” he said.

To a supplementary question from Aidel, he said the spinoff from these downstream PetChem activities include job creation for the locals and business and contract opportunities for local companies and community.

He cited as an example the ammonia plant in which a South Korea firm had invested US$1.8 billion, which would see creation of 500 job opportunities and contract opportunities such as plant construction and maintenance.

Replying a supplementary question from Ripin, he said the state government will work with Petronas to secure more natural gas for development of Petchem industries.

“We do hope Petronas will respond positively, because we understand that this will be the future economy for Sarawak. This will enable the state government to establish more robust downstream industries, and increase Sarawak participation in the higher value chain in the near future,” he said.

In his response to a supplementary question from Abdullah Saidol (BN – Semop), he said the byproducts from Petchem include high performance plastic for industrial and commercial use, automotive and pharmaceutical products, paint and coating and flooring material.

He pointed to the success of Japan in producing products from Petchem industries as a guide in such ventures.