New gas facility to come on stream next year

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Taufik speaks at the groundbreaking ceremony of BAGSF2 at Tanjung Kidurong, Bintulu.

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BINTULU: Bintulu Additional Gas Sales Facility 2 (BAGSF2) will be an efficient solution to creating new value-adding activities for Sarawak’s hydrocarbon resources.

And towards unlocking the potential of its petrochemical plants and enhancing the domestic power industry.

In stating this, Petroliam Nasional Berhad (Petronas) President and Group chief executive officer Datuk Tengku Muhammad Taufik pointed out the BAGSF2 was envisaged following the gas sales agreement with Sarawak Energy Bhd and Sarawak Petrochemical Sdn Bhd (Sarawak Petchem).

“With an estimated land usage of 70 hectares, the BAGSF2 is designed with a capacity of 390 million cubic feet of gas per day,” he said at the groundbreaking ceremony for the construction of BAGSF2 at Tanjung Kidurong, here, yesterday (Aug 22).

“The facility will include its own dedicated administration building, processing area, metering station and utilities.

“Once on stream, BAGSF2 will deliver 168 million standard cubic feet of natural gas per day to Sarawak Petchem and 70 million standard cubic feet of gas per day to Sarawak Energy.

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“In this opportunity, I’m pleased that BAGSF2 is scheduled to come on stream in 2023. As we forge ahead, Petronas remains committed to ensuring our operations and efforts in this project will continue to uphold the highest standards of safety and governance.”

He added that Petronas’ relationship with the Sarawak government has seen significant returns to the state.

“The culmination of many years of closed collaboration has achieved substantial milestones that have led us to this ceremony, ensuring that we provide a secure and uninterrupted supply of natural gas and to do so in a more sustainable way.”

“Our shared success on this front includes the gas sales agreement with Sarawak Energy Bhd in 2018 for the additional gas supply to the Bintulu power plant, the gas sales agreement with Sarawak Petchem Sdn Bhd for its petrochemical plant in 2021 and most recently, a supply arrangement on hydrogen production technology and joint technology arrangement on renewable oil was signed with Sarawak Economic Development Corporation (SEDC) Energy in mid-July this year,” he said.

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Taufik also said the groundbreaking ceremony is a strong testimony of mutual aspiration and that Petronas is committed to growing and strengthening the long-term sustainability of the oil and gas industry.

At the same time continuing strong momentum toward developing Sarawak’s resources for the economic growth of Sarawak specifically as well as the nation at large.

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