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KUCHING: National oil and gas company Petroliam Nasional Berhad (Petronas) has signed a heads of agreement (HoA) for potential natural gas supply as feedstock to a proposed petrochemical plant in Tanjung Kidurong, Bintulu.
The agreement was inked here on Wednesday (Nov 3) with Bintulu Prilled Urea Sdn Bhd (BPUSB).
Chief Minister Datuk Patinggi Abang Johari Tun Openg said BPUSB would be the second Sarawak company to venture into the downstream petrochemical industry, apart from Sarawak Petchem Sdn Bhd producing methanol.
“Obviously, there will be many challenges in this highly competitive, capital intensive and highly technical industry, but the state government shall facilitate such ventures to ensure their successful implementation.”
He said this in his text of speech read by Assistant International Trade and Industry, Industry Terminal and Entrepreneur Development Minister Datuk Naroden Majais.
Abang Johari said the proposed “blue” ammonia (low carbon) project in Tanjung Kidurong, with an investment value of RM2.1bil, had the flexibility to take in potential hydrogen molecules in future, turning it into a “green” ammonia (carbon-free) plant.
“Bintulu has a vibrant oil and gas sector. It has the necessary infrastructure such as the deep seaport and the gas supply facilities to become the regional hub for petrochemical industry.”
During the ceremony, Petronas was represented by its head of gas planning and optimisation, Malaysia Petroleum Management, Zainal Abidin Zainudin, and BPUSB by its director Roney Zaidell.
In his speech during the ceremony, Petronas senior vice-president of Malaysia Petroleum Management, Mohamed Firouz Asnan, said: “This HoA underscores Petronas’ commitment to work with the Sarawak government.
“This is in expanding the domestic gas and petrochemical industry in Sarawak in accordance to the earlier principal agreement signed in 2016.”
Firouz added that the HoA would support the aspiration of the Sarawak government to spur the growth of the domestic economy through petrochemical development.
“Towards this objective, Petronas, with the support of the state, will continue to attract new investments into the upstream sector to ensure sustainable gas supply to all our existing and new customers.
“The signing of this HoA also provides the opportunity for a new relationship with BPUSB as a domestic gas customer.”
https://www.newsarawaktribune.com.my/petronas-inks-deal-to-supply-natural-gas/
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Post time 4-11-2021 10:38 AM
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