By DayakDaily Team
KUCHING, Oct 8: A Japanese firm, HighChem, is considering Sarawak as a pilot location for technology that converts carbon dioxide into paraxylene, a key feedstock in polyester production, as the State seeks to move its petrochemical industry towards a more circular and low-carbon economy.
Deputy Minister for Energy and Environmental Sustainability Datuk Dr Hazland Abang Hipni said the proposed technology was among several downstream opportunities being explored as Sarawak seeks to produce higher-value petrochemical products while reducing its carbon footprint through more efficient use of technology and resources.
“HighChem also has a memorandum of understanding (MoU) with Sarawak Petchem for the proposed development of a syngas-to-ethylene glycol plant at the Bintulu Petrochemical Industrial Park,” he when delivering his speech at the Asia Refining & Petrochemicals Tech Forum (ASIA-TECH) 2026 in Bangkok on Wednesday (Oct 7).
In a Sarawak Public Communication Unit (Ukas) news, Dr Hazland said the initiative was in line with Sarawak’s efforts to ensure the continued development of its petrochemical industry remains aligned with the State’s decarbonisation agenda.
He said Sarawak was exploring opportunities to move further up the petrochemical value chain, particularly through the development of gas-based downstream products in Bintulu.
“This is about moving up the value chain, including materials for clothing and methods of recycling products made from gas,” he said.
He added that the approach would enable Sarawak’s gas resources and low-carbon energy to be used to produce downstream products such as polyester feedstock, packaging materials and textiles, creating greater economic value and more skilled employment opportunities.
Meanwhile, Sarawak is exploring investment opportunities worth about US$1 billion in Bintulu for the development of gas-based downstream products through discussions with Indorama, HighChem and Sarawak Petchem.
Dr Hazland said the strategic collaborations would also focus on technology and skills transfer to Sarawakians to support the development of a highly skilled workforce for the sector.
Beyond petrochemicals, he said Sarawak was also exploring the development of sustainable aviation fuel (SAF), low-carbon methanol, ammonia, urea and monoethylene glycol (MEG) as part of efforts to expand its sustainable fuel and petrochemical industries.
For SAF, several production pathways are being evaluated, including Fischer-Tropsch, Methanol-to-Jet and HEFA, with biomass and palm oil mill effluent (POME) among the potential feedstocks being studied.
Dr Hazland said the success of these initiatives would depend on technical feasibility, competitive production costs, market demand and strong collaboration among industry players.
ASIA-TECH 2026, held in Bangkok from Oct 7 to 8, brought together industry leaders, petrochemical producers, energy-sector players and technology providers to discuss downstream transformation, decarbonisation, low-carbon fuels, the circular economy and carbon management.
He said Sarawak’s participation in the forum would strengthen the State’s links with international industry players while showcasing investment opportunities in higher-value and lower-carbon downstream industries. — DayakDaily
