Sarawak Petchem and PETRONAS sign MoU to study devt of low-carbon ammonia and urea plant in Bintulu

Abang Johari (standing, centre) witnessing the signing of the MoU by Sarawak Petcham represented by (seated, from left) Abdul Razak and Mohammad, and (seated, from first right) PCG representatives Yaacob and Mazuin.

KUCHING, Feb 22: Sarawak Petchem Sdn Bhd (Sarawak Petchem) is partnering with PETRONAS Chemicals Group Berhad (PCG) to study the prospective development of a world-scale low-carbon ammonia and urea plant in Bintulu.

According to a press release, a Memorandum of Understanding (MoU) was signed yesterday (Feb 21) between the two parties, with Sarawak Petchem represented by Managing Director and Chief Executive Officer (MD/CEO) Dato’ Mohammad Ibrahim and Head of Finance and Commercial, Abdul Razak Ali, while PCG was represented by its MD/CEO Mazuin Ismail and Head of Strategic Planning and Ventures, Ir Yaacob Salim.

The signing ceremony was witnessed by Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg, Sarawak Petchem Chairman Tan Sri Datuk Amar (Dr) Abdul Aziz Husain; PCG Chairman, Tan Sri Dato’ Seri Mohd Bakke Salleh alongside PCG President and CEO Tan Sri Tengku Muhammad Taufik.

The two companies will coordinate in running research encompassing the commercial and technical angles, alongside other considerations by adopting the prospective renewable energy within the Bintulu region in order to fulfil the increasing demands for cleaner energy solutions.

Abang Johari welcomed the prospective development of the low-carbon ammonia and urea plant that could garner global recognition.

“The collaboration to jointly study the potential development of a world-scale low-carbon ammonia and urea plant is very much welcomed. This plant will have a future capability to produce ammonia with a very low carbon footprint; it is indeed a strategic initiative to capitalise on opportunities within the global energy transition market,” he said after the ceremony yesterday (Feb 21).

Petchem chairman Abdul Aziz added that the collaboration will serve as a catalyst contributing to Sarawak’s economic growth apart from creating job opportunities and promoting sustainable development highlighted in the Sarawak Post Covid-19 Development Strategy 2030 (PCDS 2030).

PCG MD/CEO Mazuin emphasised that this collaboration will also facilitate a further expansion into the Southeast Asian urea market in addition to bestowing an opportunity to leverage the renewable energy resources in Sarawak.

“We welcome this opportunity to work with Sarawak Petchem, as it will further strengthen our working relationship with the State of Sarawak. This is potentially PCG’s first low-carbon project and underlines our commitment to drive the sustainable transformation within our value chain.

“This collaboration with Sarawak Petchem not only aligns with PCG’s and the nation’s sustainability objectives, but also facilitates our further expansion into the Southeast Asian urea market. Additionally, it presents an opportunity to leverage Sarawak’s renewable energy resources while complementing our efforts in developing Carbon Capture and Storage (CCS) facilities,” said Mazuin.

Low-carbon ammonia is mainly used in the hydrogen and power sectors for cofiring and bunkering for future sustainable ammonia applications whereas urea essentially serves as a fertiliser as well as raw material for plywood resins and adhesives apart from diesel exhaust fluids for vehicular applications.

Sarawak Petchem owns and operates the region’s first mega-ethanol plant in Sarawak. — DayakDaily