Muhammad Abdullah during the Parrallel Session at Energy Asia.
KUALA LUMPUR (June 27): The synergy between the Sarawak and federal governments is vital to ensure the continuous development of the oil and gas (O&G) industry in Malaysia as well as in the state.
In stating this Deputy State Secretary Datu Dr Muhammad Abdullah Zaidel said state-federal synergy and good relationship should become an example for other nations to follow, as this will pave the way for more development opportunities in the industry.
“When Petronas decided to allocate a certain number of natural gas to our state government, for example 450 MMcf/d (million cubic feet per day), with this understanding, Petronas is actually giving the Sarawak government a special preferential rate for us to develop our petrochemical industry where we set up one of the biggest methanol production (plants) in Bintulu which should be up and running next year.
“This means Petronas supplies the gas (to Sarawak), and the Sarawak government’s entities can build up the facilities. So this becomes a synergy, rather than to quarrel about it.
“This should be the example where the rest of the world should follow, rather than showing their might, that they’re stronger than the other (nations); and this wouldn’t solve the problem,” he said.
He said this during a parallel session titled ‘Asia’s Opportunity: Building New Alliances’, as part of Energy Asia 2023 at Kuala Lumpur Convention Centre yesterday.
Muhammad Abdullah said being a state that depends on oil and gas as a resource, Sarawak has contributed almost 60 per cent of Malaysia’s oil and gas export, thus making it a major player in the country.
He also said the formation of state-owned Petros will not disrupt the development of the oil and gas industry, rather, it adds value to the industry.
“Petronas and Petros teaming up together through the Commercial Settlement Agreement (CSA) shows that the national oil corporation recognises Sarawak as having a vital role in the development of the industry.
“We thank God that as Malaysians, we are united in a sense that we can sit down together and discuss on the best way to move forward instead of arguing and wasting time.”
Also present during the session were S&P Global director for Upstream Transformation Rachel Calvert, Xcoal Energy & Resources founder and CEO Ernie L. Thrasher, SCG president and CEO Roongrote Rangsiyopash, and Japan Bank for International Cooperation board chairman Tadashi Maeda.