PCML, Sarawak Petchem sign S&P Agreement
KUCHING: Petronas Chemicals Group Berhad’s (PCG) marketing entity Petronas Chemicals Marketing (Labuan) Ltd (PCML) yesterday signed a Sales and Purchase Agreement with Sarawak Petchem Sdn Bhd ( Sarawak Petchem) to market methanol product from the Sarawak Methanol Project in Bintulu.
Under the agreement, PCML will be the marketing arm for Sarawak Petchem’s methanol product from Sarawak Methanol Plant in Bintulu for 20 years with an option to extend it further.
Representing PCML at the signing ceremony was its chief executive officer Shamsairi Ibrahim while Sarawak Petchem was represented by its chairman Tan Sri Datuk Amar ( Dr) Abdul Aziz Husain.
Also present at the ceremony were Chief Minister Datuk Patinggi Abang Johari Tun Openg, executive vice president of Petronas Downstream Business and chairman of PCG Datuk Mohamad Arif Mahmood and PCG managing director and chief executive officer Datuk Sazali Hamzah.
The signing was witnessed by PCML’s head of marketing and sales for methanol, aromatics and mathyl tert-butyl ether ( MTBE) Shahrom Muhammad Yusuf and Sarawak Petchem’s director Dr Muhammad Abdullah Zaidel.
Established in June 2017, Sarawak Petchem will be the first Sarawak governmentowned company to produce methanol, with a capacity of 1.7 million metric tonnes per annum (mtpa).
The plant is expected to come on stream in 2022 and will receive 140 million standard cubic feet per day (MMSCFD) of natural gas feedstock from Petronas.
Sarawak Petchem has selected PCML as its partner given the strong market stature of its parent company, PCG, which is the largest methanol producer in the Asia Pacific region and the fourth largest in the world with an annual production capacity of 2.4 million mtpa.
Meanwhile, Abdul Aziz said the occasion marked a very significant milestone on the achievement for Sarawak in its journey to realise its objective to be involved in petrochemical production - downstream of oil and gas sector in Bintulu.
“This historic event is not only to signify the beginning of the collaboration between Sarawak Petchem and Petronas Chemical Marketing ( Labuan) Ltd but also provide challenges for us to deliver world- class methanol plant safely, timely and optimum cost with required quality,” he said at the signing ceremony here.
Mohamad Arif said through the partnership, PCG is able to strengthen the supply of methanol to its customers.
“It will enable us to fulfil the rising demand from Asia Pacific region, especially in Southeast Asia, China, Korea, Taiwan, Japan and India, where the growing middle class is contributing to a high consumption of petrochemical products.
“This is a significant part of Petronas’ continuous commitment to support the development of the petrochemical industry in Sarawak,” he said.
He added that the venture is expected to bring about potential economic spin- offs from several outsource services which will generate more business and job opportunities for the locals.