Tuesday, September 28

State signs with Petronas for equity participation in LNG production


Abang Johari (centre) stands witness as Ahmad Tarmizi (third right) and Firouz exchanging the signed agreements. Photos by Rais Sanusi

KUCHING: The state government has agreed to acquire 10 per cent equity in Petronas LNG 9 Sdn Bhd (PL9SB) which owns the ninth liquefied natural gas (LNG) production train (Train 9) in Bintulu.

A term sheet for the equity participation in PL9SB was signed between the state government and Petronas at Wisma Bapa Malaysia here yesterday.

Chief Minister Datuk Patinggi Abang Johari Tun Openg, who witnessed the signing ceremony at his office, said the equity participation in LNG 9 is part of the state’s successful negotiation with the national oil and gas company.

“As mentioned by the late (former) Chief Minister Pehin Sri Adenan Satem, this is one of the ways for us to work together with Petronas, which has taken into consideration our interest to participate in downstream activities in Sarawak,” he told a press conference after the ceremony.

Signing on behalf of the state government was State Financial Secretary Dato Sri Ahmad Tarmizi Sulaiman while Petronas was represented by its senior vice president of Corporate Strategy Mohd Firouz Asnan.

Shamsairi (left) exchanging the MoU with Ibrahim while witnessed by Abang Johari (third right), Masing (second right),
Morshidi (right) and Wan Zulkiflee (second left). Photo by Rais Sanusi

Abang Johari said with the state’s participation in LNG 1, 2, 3 and now the equity in LNG 9, this would no doubt augur well for the good corporate relationship between Petronas and Sarawak.

“On behalf of the state government, I would like to express our gratitude to Petronas for Sarawak to participate in LNG 9.”

Following this latest agreement, the state government will now have interest in all four of the LNG assets in the Petronas LNG Complex in Bintulu, underscoring the long-standing partnership and collaboration between the state government and Petronas, particularly in developing and adding value to hydrocarbon resources in Sarawak.

The state already owns a five per cent stake in MLNG Satu Sdn Bhd, and a ten per cent stake each in MLNG Dua Sdn Bhd and MLNG Tiga Sdn Bhd.

With a production capacity of 3.6 million tonnes per annum (MTPA), Train 9 started its commercial operations in January 2017, boosting the total output capacity of the Petronas LNG Complex to 30 MTPA.

Meanwhile, Abang Johari also witnessed the signing of a Memorandum of Understanding (MoU) for logistics collaboration between Petronas Chemicals Marketing Labuan (PCML) Ltd and Hubline Berhad which will enable Hubline to join PCML’s panel of transporters for petrochemical products.

Signing on behalf of PCML was its chief executive officer Shamsairi Mohd Ibrahim while Hubline was represented by its chairman Ibrahim Baki.

Among those present during the ceremony were Deputy Chief Minister Tan Sri Datuk Amar Dr James Jemut Masing, Second Finance Minister Dato Sri Wong Soon Koh, State Secretary Tan Sri Datuk Amar Morshidi Abdul Ghani and Petronas president and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin.