KUCHING, Aug 22: Petroliam Nasional Berhad’s (Petronas) Bintulu Additional Gas Sales Facility 2 (BAGSF-2) project in Tanjung Kidurong is scheduled to come onstream next year and supply natural gas to Sarawak Petchem Sdn Bhd (SPSB) and Sarawak Energy Berhad (Sarawak Energy).
Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the project marks another significant milestone in realising the State’s own vehicle to venture into the oil and gas industry, particularly in Sarawak’s downstream petro-chemical sector.
“I am confident that BAGSF-2 will further add value to Sarawak’s downstream business through realising the operation of Sarawak Petchem as the major economic engine of growth for Sarawak in the next five to ten years,” he said at the project’s groundbreaking ceremony in Tanjung Kidurong, Bintulu today.
BAGSF-2 is designed to deliver up to 390 million standard cubic feet of gas per day (MMscfd).
The facility will occupy 70 hectares of land and will have its own dedicated administration building, processing area, metering stations and utilities.
The facility will deliver 160 MMscfd of natural gas to a Sarawak government-owned methanol plant, which will be operated by SPSB. The methanol plant is currently under construction at Tanjung Kidurong.
Another 70 MMscfd will be supplied to Sarawak Energy’s Tanjung Kidurong Power plant. The remaining capacity will allow the facility to supply future customers.
Meanwhile, Petronas president and group chief executive officer Datuk Tengku Muhammad Taufik Tengku Kamadjaja Aziz said that once onstream, BAGSF-2 will create new value-adding activities for Sarawak’s hydrocarbon resources, supporting the State’s aspiration for its petrochemicals and domestic power industry.
In 2016, Petronas signed an agreement with the Sarawak government to supply a total of 450 MMscfd of natural gas to Sarawak for power generation and State-owned petrochemical industries.
In 2021, Petronas signed another Memorandum of Understanding (MoU) to increase gas supply to 1,200 MMscfd to Sarawak.
In July this year, Petronas signed two arrangements with SEDC Energy Sdn Bhd to accelerate the development and adoption of hydrogen and renewable oil as alternative fuels for the State.
Amongst those present today were Deputy Premiers Datuk Amar Awang Tengah Ali Hasan and Dato Sri Dr Sim Kui Hian, Prime Minister’s Special Envoy to the People’s Republic of China Dato Sri Tiong King Sing, State Secretary Dato Sri Mohamad Abu Bakar Marzuki and Petronas chairman Tan Sri Dato’ Seri Mohd Bakke Salleh. – DayakDaily
