Boost for Sarawak methanol plant

KUCHING: Petroliam Nasional Bhd (Petronas) on Saturday signed an agreement and a memorandum of understanding with Yayasan Hartanah Bumiputera Sarawak (YHBS) as part of its continuous commitment to support the development and growth of the petrochemical industry in Sarawak.

The signing of the two documents was in line with Sarawak’s aspiration to be a petrochemical hub to further add value to its natural gas resources.

The first agreement relates to the key terms for the supply of 140 mmscfd of natural gas to YHBS’s proposed methanol plant at Tanjung Kidurong, Bintulu, which would produce methanol and methanol derivatives. The key terms include the price, volume and period of the gas supply by Petronas to YHBS. The agreement is a prelude to the gas sales agreement to be signed by both parties at a later date.

Sarawak Chief Minister Datuk Amar Abang Johari Tun Openg said construction works on the US$850 million (RM3.74 billion) plant would begin by year-end and completed in 2021.

“The plant will definitely give us positive returns and the state government is prudent in its investments to ensure they are profitable,” said Abang Johari.

He said Petronas had agreed to supply gas “at a reasonable price” and it would help market methanol produced from the plant.

“That is how we work with Petronas. We need to go for win-win situation.” Bernama