Premier: S’wak’s carbon capture utilisation, storage can be on global scale


Abang Johari (centre) witnessing the exchange of SK407 Farm Out Agreement between PSEP which was represented by Janin (second left) and Petronas Carigali, represented by Adif. Also seen are Hamid (second left) and Mohd Bakke (right). – Photo by Roystein Emmor

KUCHING (Oct 19): Sarawak’s potential for carbon capture utilisation and storage (CCUS) can be on a global scale in view of its geological structures that are suitable to store carbon dioxide, said Datuk Patinggi Tan Sri Abang Johari Tun Openg.

The Premier said CCUS is a key enabler to achieve Net Zero by 2050 as Sarawak gradually transitions away from carbon-based fossil fuels.

“The Gabungan Parti Sarawak (GPS) government under me, recently updated the Sarawak Land Code to include legislation regulating this new business opportunity.

“These CCUS sites are part of state land and hence belong to Sarawak,” he said at Petroleum Sarawak Berhad’s (Petros) fifth anniversary celebration which was held at Borneo Convention Centre Kuching (BCCK) here tonight.

He thus requested that Petros, given its technical skill, be the resource manager for CCUS with the support of relevant ministries.

“The CCUS industry will promote the development of the state’s massive sour gas reserves, which contains carbon dioxide to secure long-term energy-security for the state; create more domestic jobs through green industry; and provide another revenue source to Sarawak.

“I am pleased that Petronas has signed a collaboration agreement with Petros for a CCUS Joint Collaboration Agreement, which is the first step to enable the green economy,” he said.

He added that as part of the energy transition, the state government is also positioning the state to become a hydrogen producing hub in the region and this will complement the later phase of this plan.

On the Sarawak Gas Roadmap, Abang Johari said Petros is targeting to create four gas hubs in Miri, Bintulu, Samalaju and Kuching.

“Through these hubs, we will serve the whole state the ‘Hub & Spoke’ model, delivering a state-wide access to sufficient gas supply and clean energy.

“This will spur economic activities in the state to realise Vision 2030,” he said.

He pointed out that in the immediate term, Petros will deliver projects in Miri and Samalaju as part of the roadmap.

“For the Miri Hub, the first project is a 400MW Power Plant to ensure northern Sarawak Energy Security while for the Samalaju Hub, Petros will lay gas pipelines and together with Sarawak Energy, build a power plant. This is critical to complete Samalaju as a heavy industry zone.

“These projects alone will require investments of around RM6 billion. Over 10 years, across four hubs, the total projected investment is RM65 billion inclusive of downstream value-added industries,” he said and expressed his confidence that the Sarawak Gas Roadmap will be a game changer for the state.

The Premier in his speech also touched on Petros’ financial strength and growth trajectory, noting that the state-owned oil and gas company had achieved a revenue of RM1.2 billion last year, which was a significant feat by a five-year-old company.

He also said that Petros is among the ranks of the billion-Ringgit companies with a robust financial performance and a Triple A RAM rating.

During the event, Abang Johari witnessed the exchange of agreements between Petros and Petronas which included the exchange of SK407 Farm Out Agreement between Petroleum Sarawak Exploration and Production Sdn Bhd (PSEP) and Petronas Carigali; Miri Gas Supply Heads of Agreement; and Carbon Capture and Storage Joint Collaboration.

Also present were Deputy Premiers Datuk Amar Douglas Uggah Embas and Dato Sri Dr Sim Kui Hian, Utility and Telecommunication Minister Datuk Julaihi Narawi, Petros Board of Directors chairman Tan Sri Datuk Amar Hamid Bugo, Petros group chief executive officer Janin Girie, Petronas chairman Tan Sri Mohd Bakke Salleh, and Petronas executive vice president and chief executive officer of upstream Datuk Adif Zulkifli.