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PETALING JAYA: Petroliam Nasional Bhd (PETRONAS) is expanding its partnership with state-owned Petroleum Sarawak Bhd (Petros), inking two agreements on collaboration opportunities under the Sarawak Gas Roadmap, which PETRONAS said will help accelerate both parties’ shared aspirations to sustainably grow the Sarawak’s energy industry.
The first is a heads of agreement (HoA) to expand the usage of natural gas within the state for supply of 60 million standard cubic feet per day of gas by 2026 to the proposed 400 megawatt combined cycle gas turbine power station in Miri.
This follows a memorandum of understanding which was signed last December relating to the revised total natural gas supply to Sarawak for the implementation of projects under the roadmap.
The ultimate aim of the roadmap is to increase domestic gas usage in Sarawak, as the state has more than 50% of gas resources in Malaysia, but only 6% of its production is being consumed domestically while the rest is exported as liquefied natural gas.
Under the HoA, PETRONAS will be developing new gas resources along with associated offshore and onshore infrastructures to support the additional gas supply.
“This marks the beginning of the Miri hub development as outlined in the roadmap,” PETRONAS said in a statement,
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The Malaysian giant energy company has also inked a joint collaboration agreement (JCA) with Petros that would see them working closely together to establish carbon capture and storage (CCS), hence, positioning Sarawak as a regional sequestration hub.
Both parties will seek to foster Sarawak companies’ participation and local talent development in this new area, according to PETRONAS.
The JCA was signed to facilitate the stewardship of CCS development and its operationalisation in Sarawak, as the industry transitions towards a low carbon future.
Both the HoA and JCA were signed on Oct 19, 2022 during a ceremony to commemorate Petros’ fifth anniversary.
PETRONAS executive vice-president and chief executive officer of upstream Datuk Adif Zulkifli said: “As a long-term partner of Sarawak, PETRONAS continues to play its role in developing a sustainable and progressive oil and gas industry in the energy transition landscape, through world-class projects such as the Kasawari gas development which includes the application of carbon sequestration technologies.”
“At the same time, PETRONAS continues to attract new investments into the upstream sector to support the increase in gas demand as envisioned in the Sarawak Gas Roadmap,” he added.
Petros was established in August 2017 as a state-owned oil and gas exploration company.
PETRONAS Carigali Sdn Bhd (PCSB), a wholly-owned subsidiary of PETRONAS, also entered into a farm out agreement with Petroleum Sarawak Exploration and Production Sdn Bhd (PSEP), a wholly-owned subsidiary of Petros, for the sale of PCSB’s 45% of non-operating participating interest in Block SK407 production sharing contract (PSC).,