KUCHING: Two companies from China, Beijing BECA Sci-Tech Co Ltd and Sinopec Engineering Incorporation will invest $5 billion (RM20.8 billion) on a proposed integrated oil and gas complex in Lawas.
Yesterday, Chief Minister Datuk Patinggi Abang Johari Tun Openg witnessed the signing of the relevant memorandum of understanding (MoU) between the Sarawak government and the two companies.
The project on a 400-hectare land in Pulau Sari is expected to start in the fourth quarter of this year and should be completed by 2022.
Abang Johari said the investment will definitely be a game changer for the northern part of Sarawak particularly Lawas and Limbang.
“This collaboration will definitely spread out our development throughout the whole of Sarawak,” he said at a press conference after the signing ceremony at Hilton Hotel here yesterday.
He said the first phase of the project would create about 1,000 jobs and 20,000 more when the whole project has been completed.
“The companies have identified Lawas as an ideal place not only due to the various infrastructural facilities available in Sarawak, but also the environmental stability as the state has no earthquake or volcanoes,” he said.
He further said the company would have feedstock from the Middle East and have it refined in Lawas before being exported.
Also, at the same function, Deputy Chief Minister Dauk Amar Awang Tengah Ali Hasan said following the signing of the MoU, the companies will do a feasibility study which is targeted for completion in less than a year.
“The companies are among the biggest in petrol chemical industry in China. The products they produce will be marketed to China and off-takers within this region,” he stressed.
He added that under the Northern Region Development Agency (NRDA), funds have also been allocated to conduct a further study on a port to be constructed at the same site.
Earlier, during the MoU signing ceremony, Beijing BECA Sci-Tech president Hao Liang said the project will not only create huge economic value for Sarawak, but also major social benefits, industrial chain and industrial upgrading.
“On the economic front, the project is expected to generate annual sales revenue of approximately $1.5 billion,” he said.
According to him, the proposed project is a win-win one for Sarawak, Sinopec and BECA who will jointly build a world-class petrochemical facility and build a world-class petrochemical industry base using the latest designs to meet the highest environmental standards.
“With a total investment of more than $5 billion, it is the largest investment project in Sarawak and the most important project for BECA.
“BECA’s chemical development strategy is to provide petrochemical structural unites and polyolefin products to industrial customers in China, Southeast Asia, and Asia,” he said.
He said the production of high-quality fuel and petrochemical products will first meet the needs of Sarawakians for high-quality oil and chemical products.
“Today is the beginning of cooperative efforts for us. We hope to seize this unprecedented historical opportunity to develop our business.
“I look forward to this collaboration, and BECA will ensure that this industry is further refined, stronger, bigger and work the people of Sarawak to create a better future.”
Also present at the function were Entrepreneur and Small, Medium Enterprise (SME) Development Assistant Minister Datuk Naroden Majais, Industries and Investment Assistant Minister Malcolm Mussen Lamoh, Agriculture Assistant Minister Dr Abdul Rahman Ismail, acting State Secretary Datuk Jaul Samion, Deputy State Secretary (Socio-Economic Transformation) Datuk Mohamad Abu Bakar Marzuki, Sinopec Engineering Incorporation vice president Zhao Xiangdong, and Ministry of Industrial and Entrepreneur Development permanent secretary Datuk Liaw Soon Eng.