PCG, Sarawak PetChem eye ammonia, urea plant
The collaboration to jointly study the potential development of a world-scale LowCarbon Ammonia and Urea plant is very much welcomed.
Datuk Patinggi Tan Sri Abang Johari Tun Openg
KUALA LUMPUR: Petronas Chemicals Group Berhad (PCG) on Wednesday signed a memorandum of understanding (MoU) with Sarawak Petchem Sdn Bhd (Sarawak Petchem) to conduct a joint feasibility study to develop a low-carbon ammonia and urea plant in Bintulu.
Under the terms of the MoU, the two companies will conduct a joint comprehensive study on the technical and commercial aspects, among other considerations, in meeting the rising demands for cleaner energy solutions by tapping into the renewable energy potential within the region.
The MoU was signed by Sarawak Petchem’s managing director/chief executive officer (MD/CEO) Datuk Mohammad Ibrahim and head of finance and commercial Abdul Razak Ali, while PCG was represented by its MD/CEO Mazuin Ismail and head of strategic planning and ventures, Yaacob Salim.
The event was witnessed by the Premier of Sarawak, Datuk Patinggi Tan Sri Abang Johari Tun Openg; Sarawak Petchem chairman Tan Sri Dr Abdul Aziz Dato Husain; Petronas chairman Tan Sri Mohd Bakke Salleh; as well as the Petronas president and group CEO Tan Sri Tengku Muhammad Taufik.
“The collaboration to jointly study the potential development of a world-scale Low-Carbon Ammonia and Urea plant is very much welcomed.
“This plant will have a future capability to produce ammonia with a very low carbon footprint; it is indeed a strategic initiative to capitalise on opportunities within the global energy transition market,” Abang Johari said.
Abdul Aziz further added, “This collaboration allows us to capitalise on synergies, optimise costs, and share the risks, thereby maximising value for Sarawak and Malaysia.
“This further exemplifies our prudent business practices and collaborative mindset.
“This joint development initiative serves as a catalyst for economic development in Sarawak, driving job creation and fostering sustainable growth in line with the objectives outlined in the Sarawak Post Covid-19 Development Strategy 2030 (PCDS 2030).”
Low-carbon ammonia is predominantly utilised in the hydrogen and power sectors for co-firing, bunkering and future sustainable Ammonia applications while Urea serves primarily as a fertiliser, a raw material for resins in plywood and adhesives, as well as diesel exhaust fluid for automotive applications.