Awang Tengah (centre) witnesses the exchange of agreement between Sauu (left) and Firouz (second right). Also with them are Hamid (second left) and Wan Zulkiflee (right). – Photo by Chimon Upon
KUCHING: Sarawak can now leverage on its gas resources to accelerate its economic development through more high value downstream petrochemical activities with the complete transfer of Distribution of Domestic Gas from Petroliam Nasional Berhad (Petronas) to Petroleum Sarawak Berhad (Petros), says Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan.
He said Petros is now the single entity to supply, sell and deliver domestic gas to Sarawak homes, businesses and industries.
“Effective Jan 1, 2020, Sarawak has full control and authority over the supply, sales and distribution of natural gas within Sarawak, realising the full intent of the state’s Distribution of Gas Ordinance 2016.
“With this, Sarawak is now in a strong position to enhance the attractiveness of the state as a preferred investment destination and to leapfrog our economic development towards a high-income economy by 2030,” he said at the Sarawak Domestic Gas Signing Ceremony between Petros and Petronas at a leading hotel here today.
Awang Tengah, who was representing Chief Minister Datuk Patinggi Abang Johari Tun Openg, said though Sarawak holds 54 per cent of total national gas reserves as well as 29 per cent of the total national oil reserves; most of the oil and gas resources are exported as crude oil and liquefied natural gas (LNG) with very little downstream value adding activities.
With this latest development, the Second Urban Development and Natural Resources Minister said Sarawak can now attract more investments in oil and gas downstream industries by making available more gas as feedstock as well as other high value industries where gas is required for processing.
“As stated by the Chief Minister, it is the aspiration of the state retain 40 to 50 per cent of all new gas discoveries in Sarawak for our downstream high value adding activities.”
He said that Sarawak plans to establish a robust downstream petrochemical industry to increase participation in the higher value chain and thus, creating a more sustainable development for Sarawak, amidst the declining resources.
“With the existing infrastructure facilities in Bintulu, Sarawak can take advantage of the availability of our natural gas resource as feedstock and make Bintulu a thriving and vibrant oil and gas hub in the region,” he said, adding that the state government is also looking into other regions to set up petrochemical hubs apart from Bintulu.
Awang Tengah later witnessed the signing and exchange of agreement between Petronas and Petros.
Signing on behalf of Petros was its group chief executive officer Sauu Kakok while Petronas was represented by its senior vice president for Corporate Strategy Mohamed Firouz Asnan.
Also present were Petros chairman Tan Sri Datuk Amar Hamid Bugo and Petronas preisdent and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin.