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Another major milestone in state’s industrialisation

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Abang Johari (Centre) speaks at a press conference after visiting the Sarawak Petchem Methanol Project at Tanjung Kidurong, Bintulu. Also see are (from left) Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan and Sarawak Petchem chairman Tan Sri Datuk Amar Dr Abdul Aziz Husain. Photo: Ukas

BINTULU: The Sarawak Petchem Methanol Project marks another significant milestone not only to industrialise the state but more importantly the realisation of a Sarawak company venturing into the oil and gas (O&G) industry, particularly in the downstream petrochemical sector.

Chief Minister Datuk Patinggi Abang Johari Tun Openg said that the state government and its entire machinery together with the participation of the private sector were putting in all efforts to ensure that Sarawak achieved industrialised status.

“As part of our industrialisation agenda, we want to make the high-value petrochemical industry one of the key drivers for the growth of the state’s manufacturing sector and Sarawak Petchem will play a significant role in this effort.

“To realise this objective, we are also focusing on the downstream development of one of the key economic sectors of the state’s economy, which is the O&G sector.

“O&G has been identified as one of the 10 priority industries in the Sarawak Corridor of Renewable Energy (SCORE),” he said at a press conference after visiting the Sarawak Petchem Methanol Project at Tanjung Kidurong here on Tuesday (Nov 9).

Abang Johari pointed out that Sarawak had the largest gas reserve in the country at about 60 percent and he said this reserve should be a basis for the state to develop downstream gas activities.

“We have been an exporter of liquified natural gas (LNG), ammonia and urea utilising our gas as a feedstock for the industry. But the irony is that the value-added activities are done abroad utilising our natural gas as raw materials,” he said.

He said that even though Sarawak exported LNG, it was just a product and the state should go into more downstream activities in its petrochemical sector, utilising its natural gas.

“We want Bintulu to be the petrochemical hub in Sarawak through the establishment of our SEDC (Sarawak Economic Development Corporation) Petchem Hub to realise this objective of placing our downstream petrochemical activities here,” he said.

He said the methanol and derivative project was one of the two initiatives of the state government to embark on more downstream petrochemical industries.

“The Sarawak Methanol Project will be the catalyst for future downstream value-added petrochemical industries within the SEDC Petchem Hub,” said Abang Johari.

He said that this project would also undoubtedly be a catalyst to further transform Bintulu from the current world-renowned LNG gas producer to a petrochemical hub with a future downstream value-added integrated petrochemical complex.

“This will add multiple values to our natural resources which will benefit the state economically derived through its value chains,” he said.

He also noted that this was his second site visit to the Sarawak Petchem Methanol Project since he launched it a year and a half ago.

He said that he was very impressed with the development so far and congratulated Sarawak Petchem’s board and management for their efforts.

“I must also congratulate the main contractors of Sarawak Petchem, Samsung Engineering Company Limited and China Communications Construction Company (M) Sdn Bhd. They have done their job quite well,” he said.

“All the best to you and we hope by 2024, we will be selling methanol out of Sarawak,” said Abang Johari.

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