By Amanda L
MUKAH, Oct 3: Sarawak is set to develop its first liquefied natural gas (LNG) regasification facility in Kuching by 2029, with Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg stressing that Petroleum Sarawak Berhad’s (Petros) growing role in the State’s gas sector is not aimed at displacing Petroliam Nasional Berhad (Petronas).
Speaking at a press conference after the Sarawakku Sayang Programme in Mukah today, he said Sarawak’s approach was based on cooperation with Petronas while developing its own capacity to process and add value to the State’s gas resources.
“Many people say I want to kill Petronas, or that Petros will undermine Petronas. That is simply not true. We share opportunities between Petronas and ourselves,” he said.
The Premier said Petros had been in discussions with a Norwegian energy infrastructure company for more than a year, with the partner bringing more than 50 years of experience in owning and operating floating LNG terminals.
The collaboration was formalised through a Joint Development Agreement (JDA) between PETROS and Norway-based Höegh Evi, announced on Oct 1, to jointly develop, own and operate the Kuching LNG Terminal.
The terminal, which will form part of the Kuching Low-Carbon Hub, is expected to become Sarawak’s first LNG regasification facility and is targeted to deliver its first gas by the end of 2029.
Abang Johari said the floating LNG facility would allow LNG to be stored on vessels and distributed to onshore facilities or smaller-scale buyers, while the project would also support Sarawak’s wider plans for downstream gas development.
Under the JDA, the Kuching LNG Terminal will comprise a floating storage and regasification unit (FSRU), mooring infrastructure, subsea and onshore pipelines, as well as onshore receiving facilities.
Abang Johari said Sarawak was also looking at establishing small-scale LNG plants using feedstock available in the State, with regasification allowing LNG to be converted back into gas for downstream activities.
He explained that processing gas locally would allow Sarawak to pursue higher-value products while reducing reliance on the commodity’s fluctuating market price.
“Although we have gas, the price of gas fluctuates. There could be other countries supplying gas, so we can process it into high added value,” he said.
Beyond the Kuching LNG development, he said Sarawak was also pursuing carbon capture, utilisation and storage (CCUS) off Mukah-Balingian as part of its broader energy strategy.
He said revenue generated from the energy sector would be reinvested into downstream industries, including potential developments involving HighChem, Indorama and Sakura.
Abang Johari said such downstream activities could create high-paying jobs for Sarawakians as the State moves towards greater value creation from its natural resources.
“The result is that it can create high-paying jobs,” he said.
The Kuching LNG Terminal is also designed to support power generation and potential services including small-scale LNG distribution, truck loading, bunkering, storage and reload activities with the facility intended to supply gas to Kuching and potentially other parts of Sarawak. — DayakDaily
