Sarawak Petchem inks deal with Petronas Chemicals Marketing to market methanol products

Aziz (left) and Arif exchanging documents as Abang Johari (in red) looks on.

By Nigel Edgar

KUCHING, Dec 14: Petronas Chemicals Group Bhd (PCG), through its marketing arm Petronas Chemicals Marketing (Labuan) Ltd (PCML), will be marketing Sarawak Petchem Sdn Bhd (Sarawak Petchem)’s methanol products from Sarawak Methanol Plant in Bintulu for 20 years and with an option for further extension.

This follows a Sales and Purchase Agreement signed by the two today to market the methanol product. The event was witnessed by Chief Minister Datuk Patinggi Abang Johari Tun Openg at the State Legislative Assembly (DUN) complex here.

Sarawak Petchem has selected PCML as its partner, given the strong market stature of its parent company, PCG, which is the largest methanol producer in the Asia Pacific and the fourth largest in the world with an annual production capacity of 2.4 million metric tonnes per annum (MTPA).

Sarawak Petchem chairman Tan Sri Abdul Aziz Husain said this would be the beginning of a collaboration between Sarawak Petchem and PCML to deliver world-class methanol safely, timely and at optimum cost and with required quality.


“Today’s occasion marks a very significant milestone and achievement for Sarawak in its journey to pursue the realisation of petrochemical downstream of oil and gas in Bintulu,” he said at the ceremony.

Abang Johari (in red) witnessing Aziz (second left) and Arif (second right) signing the agreement.

Established in June 2017, Sarawak Petchem would be the first state government-owned company to produce methanol with an annual capacity of 1.7 MTPA.

The plant is expected to come on stream in 2022 and would receive 140 million metric standard cubic feet per day (MMSCFD) of natural gas feedstock from Petronas.

Meanwhile, PCG chairman Datuk Md Arif Mahmood said through the partnership, PCG would be able to strengthen the supply of methanol to its customers.

“It will enable us to fulfil the rising demand from the Asia Pacific, especially in Southeast Asia, China, Korea, Taiwan, Japan and India, where the growing middle class is contributing to a higher consumption of petrochemical products.

“This is a significant part of Petronas’ continuous commitment to support the development of the petrochemical industry in Sarawak,” he said.

Arif added that the venture was expected to bring about potential economic spin-offs from several outsourced services, which will generate more business and job opportunities for the local community. — DayakDaily