China firms update state govt on proposed Lawas integrated O&G project

KUCHING: Beijing BECA Sci-Tech Co. Ltd. and Sinopec Engineering Incorporated of China held a video conference yesterday to update the Sarawak government on their proposed Integrated Oil and Gas Project in Lawas.

The latest virtual session saw BECA chairman Dong Chao and Sinopec Engineering chief engineer Huo Hongwei deliver their briefing on the progress of the feasibility study for the proposed project.

Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan, who is also International Trade and Industry, Industrial Terminal and Entrepreneur Development Minister, attended the meeting from his office here, and was joined by his assistant minister Datuk Malcolm Mussen.

During the meeting, Awang Tengah informed that the state government would continue to facilitate investors who wish to invest in Sarawak.

The feasibility study for the project commenced following a Memorandum of Understanding (MoU) inked between the Sarawak government and the Chinese firms on June 10 last year for an investment US$ 5billion.

The feasibility study should have been completed earlier but was delayed due to travel restrictions in China and Malaysia to contain the spread of Covid-19.

A 400ha site in Pulau Sari, Lawas has been identified as the location for the proposed project – cited as a game changer for development in the northern region of Sarawak.

The products to be produced would be polyethylene and polypropylene which are crucial for the plastics industry, and will be marketed to China and the offtakers in this region.

It was previously reported that Sinopec Engineering and BECA chose Lawas due to its strategic location within the BIMP-EAGA region and the consumer market.

Among those who participated in the meeting were Sarawak Energy Group CEO Datu Sharbini Suhaili and Regional Corridor Development Authority (Recoda) CEO Datu Ismawi Ismuni.