SARAWAK’S first petrochemical hub will be on 432ha piece of land in Tanjung Kidurong, Bintulu, Chief Minister Abang Johari Openg said today.

At the site, he told reporters the land, 15km from Bintulu town centre and roughly 36km from the sprawling Samalaju industrial park, is ideal as it is surrounded by plants operating in similar industries – such as Petronas’s LNG plant, Shell’s middle distillate synthesis (MDS) plant, and state electricity company Sesco’s power generation plant.

Tanjung Kidurong is also adjacent to a mammoth methanol plant currently under construction.

“Sarawak aspires to be a developed state by 2030 and the growth of its economy will be partly driven by the oil and gas industry,” he said, but added that the state’s oil and gas products are mainly exported and “the value-added activities are done abroad”.

“To maximise the O&G sector’s contribution to the state economy, it is imperative for the state to be involved in developing the high value downstream products for the O&G industry.”

Abang Johari also said the state economic planning unit (EPU) is carrying out a joint study with Petronas to draw up the master plan for the hub.

He said the plan will address issues like petrochemical investment scenarios and options, utilities, infrastructure, support services and layout, its capabilities, incentives and implementation, socio-economic and key success factors.

The chief minister also said the hub was also in line with the Sarawak government’s 12th Malaysia Plan aspiration, to become Asia’s “most sustainable energy ecosystem”.

He said the industries in the hub have the potential to generate 74,000 new jobs and RM16 billion to RM20 billion to the state’s gross domestic product (GDP) annually.

The hub will be developed and managed by the Sarawak Economic Development Corporation (SEDC).

“As the land owner, the SEDC will establish a special purpose vehicle to develop and manage the hub and developing as well manage centralised utility facilities and other common areas to facilitate participation by the potential investors,” the chief minister said.

He said the SEDC will undertake the sub-division of the land based on the EPU-Petronas proposed masterplan study before leasing or selling the industrial lots to potential investors. – July 2, 2020.