PREMIER Abang Johari Openg disclosed last night that Sarawak petroleum company Petros aims to create gas hubs in Miri, Bintulu, Samalaju, and Kuching.

He said the most immediate targets were the building of a 400Mw power plant in the Miri hub to provide energy security in the northern part of the state and the laying of a gas pipeline in the Samalaju hub for a power plant that Petros will build together with the state power company Sarawak Energy Bhd (SEB). 

At Petros’ fifth anniversary dinner, Abang Johari explained that the power plant was critical to turn Samalaju—about 60km from Bintulu town—into a heavy industry zone. 

The Samalaju Industrial Park, managed jointly by the Regional Corridor Development Authority (Recoda) and the Bintulu Development Authority (BDA) is an 8,000ha area dedicated to energy-intensive industries. 

Abang Johari described the two projects, which will cost the state government around RM6 billion, as a “game changer” for Sarawak. 

Delivering a sufficient supply of gas and clean energy to all areas of the state would spur its economic activities towards realising Vision 2030, he added.

The total projected investment for the four hubs over 10 years was around RM65 billion, Abang Johari said and it included downstream value-added industries. 

“I am confident that the Sarawak Gas Roadmap will be a game changer for us Sarawakians. It is a key supporting pillar in our aspiration of high income and advanced state.” 

Petros was incorporated in 2017 to become the flagship of “Sarawak’s meaningful participation in the orderly exploitation of the state’s oil and gas resources”. 

“Sarawak needs to exploit the potentials of its resources in an aggressive but responsible manner simply because the state needs to expand its economy and shake off the tag of a ‘rich but poor state’. 

“Put simply, our oil and gas resources have not been developed in such a manner as to give enough benefits to its people,” Abang Johari said. 

He said towards this end, Petros had been entrusted with the task of furthering Sarawak’s cause, including negotiating the details of Sarawak’s commercial position with national petroleum company Petronas. 

That, he added, culminated in the signing of the Commercial Settlement Agreement (CSA) in December, 2020. 

The agreement included Sarawak’s equity participation in offshore operations and the assurance that 25% of the state’s gas was prioritised for Sarawak’s domestic needs. 

Further, Petros is empowered to develop potentials of oil and gas onshore. 

Last year, the company registered a revenue of RM1.2 billion placing it among the ranks of the billion-ringgit companies. 

Abang Johari said its “robust financial performance” had earned the company a triple A RAM rating. 

Triple A is the highest bond rating in the domestic debt capital market and a rating of AAA is considered to carry virtually no risk. – October 20, 2022.