KUCHING, Oct 20: A new gas-fired power plant will be set up in Miri to mark the beginning of the Miri Hub development as outlined in the Sarawak Gas Roadmap (SGR).
The new gas-fired power plant will ensure energy security for Northern Sarawak and complements the State’s hydropower resources in the energy-mix.
It is part of Petroleum Sarawak Berhad’s (Petros) plan to create four gas hubs in Miri, Bintulu, Samalaju and Kuching with a total projected investment of RM65 billion over 10 years inclusive of downstream value-added industries.
According to Petros chairman Tan Sri Datuk Amar Hamid Bugo, on Oct 17, 2022, representatives from Petroliam Nasional Berhad (Petronas) and Petros executed a Heads of Agreement for the sale and purchase of 60 MMSCFD (million standard cubic feet per day) of natural gas, sourced from offshore Sarawak, for the planned power plant in Miri.
Hamid made the announcement during Petros’ 5th anniversary celebration at Borneo Convention Centre Kuching (BCCK) yesterday when he unveiled the three key milestone agreements between Petros and Petronas, namely Farm-in of Block SK407 Production Sharing Contract (PSC), Heads of Agreement for Sale and Purchase of Natural Gas for Miri and Carbon Capture Storage (CCS) Joint Collaboration Agreement as the State’s own integrated player of the oil and natural gas value chain.
Also present was Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
The chairman said the strategic collaborations signify the corporation’s further growth in the oil and gas value chain and significant progress into its SGR strategy.
SGR is a key pillar in realising the State’s 2030 vision of becoming a high income and advanced State through the prioritisation of 1,200 MMSCFD of Sarawak’s natural gas to spur the domestic economy.
Also present were Petronas chairman Tan Sri Dato’ Seri Mohd Bakke Salleh and its executive vice president and CEO of upstream Datuk Adif Zulkifli.
On BlockSK407, Hamid said Petroleum Sarawak Exploration & Production Sdn Bhd (PSEP), a wholly owned subsidiary of Petros, has agreed with Petronas Carigali Sdn Bhd to farm-in to SK407 Production Sharing Contract (PSC), acquiring 45 per cent equity in the PSC effective January 1, 2023.
“Block SK407, located offshore Miri in the prolific Baram Delta Province, is an important upstream oil and gas producing asset for Petros and for Sarawak in its continuing efforts to increase its portfolio of equity hydrocarbon resources.
“Increasing the State’s access to adequate hydrocarbon resources is critical to enable and propel the realisation of the Miri Hub development envisioned under SGR,” said Hamid.
On the carbon storage initiative, Petros has entered into a Joint Collaboration Agreement with Petronas to jointly study the potential to develop and monetise CCS opportunities in Sarawak.
“This collaboration explores, among other things, commercially viable CCS solutions as an enabler of sour gas reserves development (i.e. reserves containing naturally occurring CO2, besides natural gas) by capturing and sequestering CO2.
“Such developments, in turn, brings significant investment capital into Sarawak for decades to come, and generate high-income jobs,” said Hamid.
Meanwhile, commenting on the key milestones, Petros group CEO Janin Girie said the signings of these agreements were part of a focused effort to power Sarawak’s socio-economic development by actively participating throughout the oil and gas value chain – by increasing access to adequate hydrocarbon resources and expanding the domestic utilisation of Sarawak’s natural gas through industry partnerships to maximise positive benefits for Sarawakians.
“This is in line with our efforts to support the Sarawak government’s aspiration of being a developed state by 2030. Petros is committed to our purpose which is to harness our natural resources for the sustainable progress of Sarawak,” said Janin. — DayakDaily
