Project to distribute natural gas from Bintulu to Kuching to be finalised by Q1 2024

Julaihi (seated centre) photographed with others during a press conference at DUN Complex, Kuching on Nov 27, 2023.

By Shikin Louis

KUCHING, Nov 27: Commercial negotiations for the proposed Pan Sarawak Virtual Pipeline System (VPS) project which will transport liquefied natural gas (LNG) from Bintulu to Kuching City, is expected to be finalised by the first quarter of next year.

Minister of Utility and Telecommunication Sarawak Dato Sri Julaihi Narawi said this is one of the efforts by his ministry through Petroleum Sarawak Berhad (Petros) to increase gas usage in the State in line with the Sarawak Gas Roadmap.

“Petros will implement a pilot project of VPS where LNG will be sent from Bintulu to Kuching City.

“This project is still under commercial negotiation and it is expected to be finalised by the first quarter of 2024,” he said when presenting his ministerial winding-up speech in the Sarawak Legislative Assembly (DUN) sitting here today.

Back in May 2023, Julaihi stated that the VPS project would be extended to other major cities in Sarawak with Kuching being the first.

Julaihi also said Petros will implement the Bintulu-Samalaju Gas Pipeline project and Combine Cycle Gas Turbine (CCGT) project with a capacity of 400 megawatts (MW) in Miri.

Apart from Miri, he said CCGT in Samalaju will also be built by Sarawak Energy Berhad.

“This initiative is a wise move by the Sarawak government in an effort to change the energy transition from the use of coal or diesel to gas because energy sources from gas are comparatively cleaner than coal and diesel energy sources.

“At the same time, the Sarawak government’s focus on generating electricity based on hydro resources through cascading dams during the energy transition phase is the right step,” he added. – DayakDaily