By Nancy Nais
KUCHING, Dec 11: Sarawak’s natural gas supply access is set to increase to 1200 million standard square feet per day (mmscfd) from the current 450 mmscf/d by 2030.
Chief Minister Datuk Patinggi Tan Sri Abang Johari Tun Openg said the increase in supply of over 250 per cent will help secure Sarawak’s resources for the development of the state.
The Sarawak government through Petroleum Sarawak Berhad (Petros) and Petroliam Nasional Berhad (Petronas) today signed a Memorandum of Understanding (MOU) on the staggered increase of natural gas supply to implement identified projects under the Sarawak Gas Roadmap (SGR).
“Our 10-year SGR is designed to realise the full potential of our abundant gas resources aimed at achieving Sarawak Vision 2030 by contributing towards 10 per cent growth in GDP and creating thousands of ‘high income’ job opportunities.
“The SGR envisages implementation of broad economic activities in the period to 2030 from the development of additional power generation, petrochemical industries to re-shaping the landscape of downstream businesses within Sarawak, centred upon four strategic demand hubs spanning the state,” Abang Johari said at the ceremony this morning.
This he added, is also to exercise Sarawak’s rights and the Commercial Settlement Agreement (CSA) effectively.
“What is important is that our state oil and gas company Petros is a one-stop centre to operate Sarawak’s oil and gas value chain, with the cooperation of players in the market including investors and Petronas,” Abang Johari said.
The Sarawak government launched Vision 2030 with the aim to transform Sarawak into a High-Income Advanced State by the year 2030.
A bold aspiration to double the state’s GDP and triple household income by the end of the decade, he said this will also integrate environmental sustainability across all development initiatives.
“Gas offers game-changing socio-economic opportunities in downstream sectors, such as power generation, petrochemicals and other industries, while limiting carbon emissions.
“Well recognised as a ‘transition fuel’ in the global decarbonisation journey, this crown jewel of Sarawak’s resources has a key role to play in meeting power demand growth and diversifying the power generation mix,” he added.
Since its incorporation in 2017, Sarawak government has continued to strengthen Petros in both upstream and downstream supply chains.
To-date, among Petros’ upstream achievements are being the regulator and resource manager of onshore Sarawak and implementor of the State’s OMO 1958.
Petros’ has awarded it’s first Onshore Exploration Block SK 433 to rejuvenate the exploration, development and mining of oil and gas in onshore areas.
It’s wholly owned operating subsidiary Petroleum Sarawak Exploration & Production Sdn Bhd (Petros EP) has also entered into two Offshore Sarawak Production Sharing Contracts (PSCs) as a non-operating equity partner effective Jan 1 this year.
“As a result, today, Petros EP is the third largest equity gas producer in Sarawak, behind Petronas Carigali and Shell.
“Petros EP has also secured a minority carried interest position in one Offshore Sarawak Exploration Block and expects to gradually increase its presence going forward,” Abang Johari said.
As for downstream, he added that Petros is working closely with other state entities to increase the domestic gas utilisation through various SGR map initiatives.
This he said, is to capture greater value locally from upstream gas production and contributing to socio-economic growth through job creation for Sarawakians. — DayakDaily
