Sarawak Premier Tan Sri Abang Johari Openg speaking at the Sarawak Future Forum in Kuching. - ZULAZHAR SHEBLEE/The Star
KUCHING: Petroleum Sarawak Bhd (Petros) has committed RM1bil investment in the Samalaju gas pipeline project in Bintulu.
Pipe materials for the project are being manufactured, with the installation of this offshore pipeline is on track for completion by November 2025, said Sarawak Premier Tan Sri Abang Johari Tun Openg.
The Samalaju gas pipeline will boost the supply of natural gas to energy-intensive industries, such as aluminium and ferroalloy smelting plants, in Samalaju Industrial Park.
The 70-km pipeline will also supply gas to the combined-cycle gas turbine power station in Bintulu currently being built.
“Looking ahead, Petros is making significant investments to fuel Sarawak’s energy future.
“This includes a RM100mil investment in the Gas-to-Bintulu project aimed at providing natural gas to Bintulu, alongside a RM1bil commitment to the Samalaju pipeline project,” said Abang Johari when attending the state-owned Petros seventh anniversary dinner here last Wednesday.
Under “Sarawak Gas Roadmap”, he said Petros is enhancing statewide gas accessibility via four strategic hubs in Miri, Bintulu, Samalaju and Kuching.
These strategic hubs will serve as central distribution points within a “hub-and-spoke” delivery model to all parts of Sarawak, including the hinterland areas, enhancing access to affordable gas for the people.
“This journey of progress has always been about unlocking new industrial investment opportunities across the state to build a foundation for long-term economic sustainability.
“By managing our resources through Petros, we take charge of our future ensuring that the benefits we receive from Sarawak’s resources reach the people of Sarawak directly,” he added.
Abang Johari cited the ongoing expansion of domestic gas distribution infrastructure in Miri as a clear demonstration of this commitment.
Last year, Petros completed a landmark project providing 115 traders at Medan Saberkas with reliable and affordable natural gas and in February 2024 completed the first phase of a significant multi-phase infrastructure to deliver safe, reliable and affordable piped gas to 13 lower-income households in Quadruplex Taman Ceria (QTC) in Permyjaya.
“The second phase, aimed at connecting and additional 135 households, is currently on track and expected to be completed by 2025. Once fully implemented, the overall OTC project will benefit more than 3,000 households in Permyjaya (a Miri township).” he said.
Effective since Feb 1, Petros was authorised to manage the procurement and distribution of all natural gas produced in Sarawak.
The Premier said as the gas aggregator, Petros is entrusted to invest in the development, expansion, management and maintenance of critical gas and energy infrastructure throughout Sarawak, adding the progress it made in Miri is just the beginning of the footprint and there will be more to come.
On the Kuching low-carbon gas hub project, Abang Johari said it represented a cornerstone of the Sarawak government’s vision for a sustainable future.
“Building the foundation set by the Sarawak Gas Roadmap, this initiative will first bring natural gas to Kuching, develop world-class carbon capture and storage (CCS) infrastructure and unlock offshore gas development in western Sarawak.
“The Kuching low-carbon gas hub, complemented by critical infrastructure, such as a new deep sea port, is positioned to attract investments of up to RM20bil in Sarawak,” he added.
Petros’ retail liquified petroleum gas (LPG) arm – Petros Niaga Sdn Bhd – holds a 100% market share in subsidised LNG for household use in Sarawak since last December.
“This milestone ensures Petros can better serve Sarawak’s household customers.”
Petros and Petronas Dagangan Bhd
have a 51:49 equity interest in Petros Niaga.
Abang Johari said as Malaysia’s third largest oil and gas equity producer, Petros continues to demonstrate its commitment to rejuvenating onshore exploration efforts.
He said as the onshore exploration and production regulator for the SK433 Block, Petros is driving the early commercialistation of onshore oil and gas discoveries for Sarawak.
In June 2021,Petros awarded the SK433 Block, which covers an area of 3,100 sq km in northern Sarawak, including the discovered Adong Kechil West field, to Petra Energy Bhd and Uzma JV. The first drilling of SK433 block commenced in October 2023.
