S’wak’s virtual pipeline set for Q1 2026 launch, Kuching Low-Carbon Hub to spearhead new gas network

An infographic illustrating the Sarawak Virtual Pipeline System (VPS). Screenshot taken from Sarawak Public Communication Unit (UKAS) livestream on YouTube.
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By Amanda L

KUCHING, Dec 1: Sarawak’s Virtual Pipeline System (VPS), which will transport LNG from Bintulu to Kuching, is set to begin operations in the first quarter of 2026, signalling a major shift in how the State delivers gas to areas beyond existing pipeline networks.

Minister of Utility and Telecommunication Dato Sri Julaihi Narawi said that the VPS will widen gas access, particularly for off-grid districts that currently rely on alternative fuels. He said the move is intended to spur industrial activity and expand domestic energy consumption.

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“This system will bring LNG to where pipelines cannot reach. It supports local industries and strengthens our energy resilience,” he said during his ministerial winding-up speech at the Sarawak Legislative Assembly (DUS) sitting today.

Julaihi also highlighted the Kuching Low-Carbon Hub (KLCH), a new industrial cluster that will feature a regasification terminal, a low-carbon petrochemical park, expanded gas infrastructure and a 5,000MW combined cycle gas turbine plant.

An infographic illustrating the Kuching Low-Carbon Hub (KLCH). Screenshot taken from Sarawak Public Communication Unit (UKAS) livestream on YouTube.

“The KLCH is a strategic investment for Kuching. It positions Sarawak as a leader in clean and efficient gas-based development,” he added.

Both the VPS and KLCH form key pillars of the Sarawak Gas Roadmap, which targets an increase in domestic gas utilisation from the current seven per cent to at least 30 per cent by 2030.

Julaihi also noted that PETROSNiaga Sdn Bhd has served as the sole distributor of subsidised LPG in Sarawak since December 2023.

The company, jointly owned by PETROS and PETRONAS Dagangan Berhad, was tasked with stabilising supply after an incident on January 29, 2025, disrupted operations at the Bintulu LPG cylinder filling facility.

“Despite the setback, PETROSNiaga acted promptly and ensured that LPG supply to households remained steady.

“Ongoing gas initiatives reflect the State’s commitment to energy security and a transition towards a low-carbon industrial ecosystem,” he said. — DayakDaily

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