Petros identifies three sites for carbon storage with capacity of about 1,000 metric tonnes of carbon dioxide equivalent

KUCHING: State-owned oil and gas company Petroleum Sarawak Berhad (Petros) has identified three sites for carbon storage  with a capacity of approximately 1,000 metric tonnes of carbon dioxide equivalent (C02e), off Sarawak’s coast, its senior vice president for resource management Nazrin Banu Shaikh Sajjad Ahmad said here today. 

Petros also committed to rejuvenating onshore oil and gas potential

She said the first site is located in the Southwest and Western Luconia province that will be the centre of energy growth supporting the establishment of the Kuching economic hub.

“It will enable sour gas fields development and decarbonisation of new industries in Kuching as well as exisiting local emissions,” she said at the launch of Petros’s Sarawak Bid Round (SBR) 2024, a key initiative aimed at harnessing Sarawak's distinctive geology for Carbon Capture, Utilisation, and Storage (CCUS). 

She said the site consists of several depleted fields nearing the end of their field life in the Balingian province.

Nazrin said the third site  consists of the depleted fields in the Central Luconia province, including high quality reservoirs and existing oil and gas infrastructures.

“In addition to CCUS, Petros is also committed to rejuvenating onshore oil and gas potential in Sarawak and advancing early commercialisation of onshore oil and gas discoveries,” she said.

She said Adong Kechil West in Block SK433, located 24 km from Miri town, is having progressing well towards first production and commercialisation next year.

“Replicating this success is key for onshore upstream rejuvenation, and Petros is investing significantly to de-risk the petroleum system element and further upgrade onshore prospectivity in all onshore blocks, particularly in Blocks SK334 (Limbang-Lawas) and SK431 and SK441 (Oya-Mukah-Balingian). 

“Currently, we are carrying out more studies through seismic reprocessing and seismic acquisition and looking into the application of enhanced full tensor gravity (e-FTG) technology in onshore Sarawak,” she added.

On  the launch of SBR 2024, she said it  underscores Petros' commitment to driving CCUS innovation and contributing to the region’s net zero goals.

“The bid round aims to promote and showcase Sarawak’s carbon storage capabilities, providing a transparent and competitive platform for potential investors interested in conducting techno-commercial storage studies to develop the CCUS value chain in the state,” she said.

The launch was attended by almost 200 participants from multinational companies, including upstream players, carbon emitters, infrastructure developers, service providers, shipping companies, financial institutions, and consultancy firms.

 

Petros signs Gas sales Agreements with Petros and Sarawak Energy to commence its role as sole gas aggregator

 

By Henry Tiong

BINTULU, July 22, 2024 - State-owned oil and gas company Petroleum Sarawak Berhad (Petros) has recently signed Gas Sales Agreements (GSAs) with Sarawak Petchem Sdn Bhd (Sarawak Petchem) and Sarawak Energy Berhad (SEB) to commence its role as the sole gas aggregator to buy and sell all natural gas in Sarawak.

Picture: Premier Datuk Patinggi Abang Johari Openg launching the RM7 billion Sarawak Methanol Complex in Bintulu.

The exchange of documents between Petros and the two state-owned companies was held today at the launch of the RM7 billion Sarawak Methanol Complex, witnessed by Premier Datuk Patinggi Abang Johari Openg.

The first two GSAs signing signifying the implementation of the amendment to the state’s Distribution of Gas Ordinance, 2016 (DGO 2016), appointing Petros as the sole gas aggregator in Sarawak.

The two GSAs will enable Sarawak Petchem to have access to gas for its methanol plant and SEB for its gas-fired power generation in Bintulu.

As a gas aggregator, Petros will ensure that gas allocation for export and for local value-add is determined strategically and fairly.

The continued growth of Sarawak’s economy requires availability of natural gas as fuel for power generation, commercial industries and industrial feedstock.

It is envisaged that 30 per cent of the gas should be allocated for domestic needs by 2030 in line with the Post-Covid-19 Development Strategy 2030 (PCDS 2030).

Petros group chief executive officer Datuk Janin Girie said the signing of the two GSAs is a historical milestone in the implementation of the DGO to ensure sufficient natural gas is available to the people and for the industrial development of Sarawak.

“We appreciate the trust placed upon us by the Sarawak government and the Ministry of Utility and Telecommunications  to secure domestic natural gas resources for the short, medium and long-term needs.”

He also emphasised that Petros is entrusted to invest in the development, expansion, management and maintenance of critical gas and energy infrastructure statewide.

“Presently, it is progressing the development of four Gas Hubs in Kuching, Miri, Samalaju and Bintulu under the Sarawak Gas Roadmap (SGR).

“These hubs, serving as central points for gas distribution through the “Hub-and-Spoke” delivery model, will enhance access to affordable gas and create industrial investment opportunities.

“This includes the new gas trunkline that Petros is executing to deliver gas from Kidurong to the Samalaju Industrial Park.    

“To support Sarawak’s aspiration to become a high-income developed state by 2030, Petros continues its efforts to deliver real impacts through its strategic role as the gas aggregator.

“Our ongoing implementation of SGR and the development of Carbon Capture, Utilisation and Storage (CCUS) infrastructure will be the engine of growth, uplifting and transforming Sarawak into an economic powerhouse for the nation and the region.

“These new infrastructure and value-adding gas-based projects are expected to collectively create over 100,000 high-quality jobs across the state for anak-anak Sarawak,”Janin stressed.

He added that in the coming months, Petros is looking forward to signing all other Gas Sales and Purchase Agreements with upstream gas sellers and downstream gas buyers.

Sarawak premier launching RM7 billion methanol complex, capable of producing 1.75 million metric tons of methanol annually

 

By Henry Tiong

BINTULU, July 22, 2024
- Sarawak Premier Tan Sri Abang Johari Openg today launched the state-of-the-art RM7 billion Sarawak Methanol Complex, a testament of the state leadership’s commitment to transform Bintulu into a petrochemical hub in the region. 

Premier Datuk Patinggi Abang Johari Openg says Sarawak Methanol Complex representing another major investment in the state . File picture

The complex is capable of producing up to 1.75 metric tons of methanol annually.

He said it stands as proof that with sheer determination, teamwork and perseverance, the state can overcome challenges in undertaking such a massive and sophisticated project.

“This complex represents another major investment in Sarawak, serving as a catalyst for more economic development in this region, driving job creation, fostering sustainable growth and social inclusivity,” Abang Johari said.

He said the realization of the complex also marks the state’s entry into the petrochemical industry and emergence as a significant player in the global methanol market.

On the exchange of Memorandum of Understanding (MoU) between the complex’s owner and operator Sarawak Petchem Sdn Bhd and Sarawak Petroleum Sdn Bhd (Petros), he said the state oil company will supply another new 160  Million standard cubic feet per day  (MMSCFD) of natural gas to Sarawak Petchem.

He said the supply of the natural to Sarawak Petchem is an integral of the Sarawak gas roadmap fpr the new low carbon ammonia and urea plant project in Bintulu.

“This is another downstream activity and we believe ammonia as basis for us to produce urea for the production of fertiliser that is important for our agriculture sector,” he said, adding that fertliser is important to ensure food security.