Malaysia’s energy giant Petronas and state-owned Petroleum Sarawak (Petros) have signed two key deals to collaborate under the Sarawak Gas Roadmap, which Petronas said would help accelerate the companies’ shared aspirations for sustainable growth of the East Malaysian state’s energy industry.
The duo have signed a heads of agreement to expand the use of natural gas within Sarawak, starting with the supply of 60 million cubic feet per day of gas by 2026 to the proposed 400-megawatt combined cycle gas turbine power station in the city of Miri.
This follows a memorandum of understanding signed last December relating to the revised total natural gas supply to Sarawak to implement projects under the roadmap. Petronas will be developing new gas resources alongside the related offshore and onshore infrastructure to support these additional gas volumes.
“This marks the beginning of the Miri Hub development as outlined in the roadmap,” Petronas said.
Petros and Petronas will work closely to establish carbon capture and storage (CCS) as a new business opportunity through a roadmap study for a CCS ecosystem to position Sarawak as a regional sequestration hub.
The deal is also aimed at encouraging companies in the state of Sarawak to get involved in green initiatives and help develop local talent in this new sector.
“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,” commented Petronas chief executive of upstream Adif Zulkifli.
“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.
Meanwhile, national upstream company Petronas Carigali has agreed to farm out a 45% non-operated interest in its Block SK 407 production sharing contract offshore Sarawak to Petros’ subsidiary Petroleum Sarawak Exploration & Production (PSEP).
This sale marks PSEP’s third stake in a producing upstream asset, after last year farming in to the Malaysia LNG Satu and Kumang Cluster PSCs.
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