Datuk Amar Awang Tengah Ali Hasan. - ZULAZHAR SHEBLEE/The Star
KUCHING: Beijing BECA Sci-Tech Co Ltd is expected to commence its US$5.2bil (RM24.3bil) integrated petrochemical and refinery project in Lawas, northern Sarawak, in the first quarter of 2024 (1Q24).
The project’s implementation timeline has been disrupted by the movement control order to curb the spread of Covid-19 pandemic. Construction work was originally set to start three years ago.
Sarawak Deputy Premier and International Trade, Industry and Investment Minister Datuk Amar Awang Tengah Ali Hasan was informed of the new construction work commencement date in a meeting with Beijing BECA chairman Dong Chao and company’s senior executives in Beijing recently.
The meeting discussed the progress of the ambitious project, which is expected to be implemented in stages.
Beijing BECA has reaffirmed its commitment to invest US$5.2bil in the facility, which is the company’s most important project, according to a statement from the ministry.
Beijing BECA, a petrochemical investor, is collaborating with its technical partner, Sinopec Engineering Inc, and China International Trust and Investment Corp to execute the massive undertaking for the project.
Awang Tengah said the company had also completed the hydrogen studies for the project.
In May 2023, Beijing BECA informed him that it had concluded the soil investigation and sea survey with satisfactory results for the company to proceed with the project.
Awang Tengah has assured the company that the Sarawak government would do its utmost best to facilitate the successful implementation of the project.
The integrated petrochemical complex will include a world-class deep catalytic cracking (DCC) and associated olefin derivative unit.
DCC is a fluidised catalytic cracking process that selectively cracks various heavy feedstocks to light olefins.
Beijing BECA president Hao Liang was earlier reported to have said that the integrated petrochemical and refinery complex will have a production capacity of 10 million tonnes per year of refinery, 1.2 million tonnes per year of ethylene and 3.2 million tonnes per year of DCC.
The complex, which is expected to generate annual sales of about US$1.5bil, will source its feedstock from the Middle East, then refine it and sell the end-products to the consumer markets in China, South-East Asia and Asia.
The Sarawak government has earlier promised to provide supporting facilities, including the development of a new port in Lawas to facilitate the import and feedstock and shipment of the refined products, for the project.
Hao said as a capital, technology and talent-intensive industry, the petrochemical complex will attract midstream and downstream supporting industries and inject strong momentum into Sarawak’s economy.
While in Beijing, Awang Tengah and his delegation witnessed the signing of a memorandum of understanding between Hong Kong-based Savewo International Ltd and Twin Catalyst Sdn Bhd to manufacture Wondaleaf products in Sarawak for sales in the international market.
If materialised, the partnership is expected to involve investment of more than RM30mil.
Savewo is an innovative company specialised in the development, design and production of health protection gear.
