Abang Johari (left) at the Sarawak OGSE Roadshow 2022 exhibit accompanied by Mustapa (right), Hamid (second right) and Abdul Aziz (second left). – Photo by Muhammad Rais Sanusi
KUCHING (June 23): Sarawak is committed to maintain at least 60 per cent of its power generation capacity mix from renewable sources by 2030, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
He said these present vital pathways for economic growth as well as income generating activities.
He pointed out that Sarawak was moving towards a low carbon future with renewable hydrogen and green society and to achieve net-zero carbon emission, this required the state to focus on clean energy solutions to capture opportunities in the energy transition.
“Sarawak is well positioned to capture this new growth opportunity and create an energy transition that is safe, responsible and cost effective with abated emissions.
“With the recent passing of the amendments to the Land Code, Sarawak now has a good start to regulate Carbon Capture Utilisation and Storage (CCUS) activities within our territory,” he said when closing the Sarawak Oil and Gas Services and Equipment (OGSE) Roadshow 2022 at Borneo Convention Centre Kuching (BCCK) here today.
He said CCUS is based on proven technologies with the element of capture, transport and storage and plays a key role in the energy transition space.
“I have, during my recent visit to Shell’s Energy Transition Campus in Amsterdam explored what Shell has to offer in the CCUS technology space. I believe this is one of the fields that we can capitalise and explore further with close collaboration between government, industry and investors.
“I strongly believe that the provision of sustainable energy is a prerequisite to sustainable economic and social development,” he said.
He said Sarawak can be a haven for nature-based solution projects as there are now relevant legislations to govern carbon within the ambit of nature-based solutions.
“What is clear, the rights to carbon within Sarawak’s natural landscape resides here in Sarawak, and is reaffirmed by the recent amendment to the Sarawak Forestry Ordinance,” he said.
He also said that by leveraging on low carbon opportunities in nature-based solutions coupled with technology, the state was now transitioning to build a hydrogen economy.
“Sarawak shall create an ideal ecosystem for the hydrogen economy to be a pioneer in Asia Pacific to explore, innovate and produce green hydrogen.
“This initiative requires, among others, engineering expertise throughout the value chain, especially during the engineering, procurement, construction and commissioning (EPCC) stage,” he said.
On a related matter, Abang Johari said various initiatives have been introduced to facilitate OGSE companies to move into higher value and sustainable verticals.
“These initiatives will help our industrial players to harness efficiency and grow their business sustainably to compete abroad and across sectors, widen industry stream and profitability.
“OGSE companies in Sarawak should tap into these opportunities, particularly OGSE Development Grant, export promotion, and human capital development,” he said, adding that the companies should also practise the highest level of health, safety and environment (HSE) standards by incorporating Environment, Social and Governance (ESG) standard.
On the Sarawak OGSE Roadshow 2022, Abang Johari said this was a very important platform for the oil and gas industry players to gather, explore and venture towards sustainable value creation of the industry.
He said the signing of the Heads of Agreement between leading oil and gas players namely Petronas, PTTEP HK Offshore Limited and Sarawak Shell Berhad for the Sarawak Integrated Sour Gas Evacuation System (SISGES) project at the event marked a significant milestone for the state to ensure a sustainable gas supply for both industry and domestic markets.
“With the availability of gas supply, we will be able to spur and diversify our economic growth towards high value downstream industry besides creating new industries,” he remarked.
He said this reaffirmed Sarawak’s commitment to maintain a stable and conducive business and investment environment for sustainable growth of the oil and gas industry, both upstream and downstream.
“I am optimistic that with the exemption of Sarawak from the Gas Distribution Act and given full authority under our Gas Distribution Ordinance, the state is able to chart its way forward confidently under our Gas Distribution Blueprint to further spur development in Sarawak’s oil and gas industry, upstream and downstream.
Also present were Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed, Deputy Minister of Energy and Environmental Sustainability Dr Hazland Abang Hipni, Petroleum Sarawak Berhad (Petros) chairman Tan Sri Datuk Amar Dr Hamid Bugo, Sarawak Economic Development Corporation (SEDC) chairman Tan Sri Datuk Amar Abdul Aziz Hussain, and Malaysia Petroleum Resources Corporation (MPRC) chairman Dato Dr Ahmad Suhaili Idrus.