KUCHING: About 40℅ to 50% of new findings of gas resources in Sarawak must be retained as feedstock for gas- related industries in the state, Sarawak Chief Minister Abang Johari Openg said today.
He said this was to ensure Sarawak had sufficient gas feedstock to drive downstream activities of the natural gas industries in Sarawak, particularly the petrochemical industries.
Abang Johari announced this during the launch of Sarawak’s first methanol plant – Sarawak Petchem – at Tanjung Kidurong in Bintulu here, today.
Established in June 2017, Sarawak Petchem is expected to start its operations in 2023 and will receive 160 million standard cubic feet per day of natural gas feedstock from Petronas.
He went on to say that although Sarawak held the largest share of Malaysia’s remaining gas reserve he was not satisfied with the existing development of the oil and gas industry in Sarawak.
He said he wanted to maximise the oil and gas contribution to the state’s economy by developing Bintulu into a petrochemical hub and inviting petrochemical industries to set up plants in Sarawak.
“To do this, we will be intensely involved in developing the high value downstream products of oil and gas industries such as specialised and fine chemicals.
“In this regard, we will consider all feasible proposals to establish petrochemical plants in the state and will facilitate them accordingly,” he said.
He said he was confident that Sarawak would be able to attract investment in the oil and gas downstream sector based on its previous track record in foreign direct investment.