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    Petronas, Petros to develop Sarawak's gas industry

Summary

Petronas has signed two agreements with Petroleum Sarawak (Petros) on collaboration opportunities under the Sarawak gas roadmap.

by: Shardul Sharma

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Petronas, Petros to develop Sarawak's gas industry

Petronas has signed two agreements with Petroleum Sarawak (Petros) on collaboration opportunities under the Sarawak gas roadmap that will help grow the state’s energy industry, it said on October 28.

The first is a heads of agreement (HoA) to expand the usage of natural gas within Sarawak state for the supply of 60mn ft3/day of gas starting by 2026 to the proposed 400 MW combined cycle gas turbine power station in Miri.

This follows the MoU signed in December 2021 relating to the revised total natural gas supply to Sarawak for the implementation of projects under the Sarawak gas roadmap. In relation to this, Petronas will be developing new gas resources and the associated offshore and onshore infrastructures to support the additional gas supply.

Petronas said this marks the beginning of the Miri hub development as outlined in the roadmap.

In addition to the HoA, Petronas and Petros will also work to establish carbon capture and storage (CCS) as a new business opportunity through a roadmap study for a CCS ecosystem, in positioning Sarawak as a regional sequestration hub.

Both parties will also seek to foster Sarawak companies’ participation and local talent development in this new area. To formalise this, a joint collaboration agreement was inked to facilitate the stewardship of CCS development and its operationalisation in Sarawak.

Both the HoA and joint collaboration agreement were signed on October 19 during a ceremony to commemorate Petros’ fifth anniversary.

On the same day, Petronas Carigali, a wholly-owned subsidiary of Petronas, entered into a farm-out agreement with Petroleum Sarawak Exploration and Production (PSEP), a wholly-owned subsidiary of Petros, for the sale its 45% of non-operating participating interest in Block SK407 PSC.

This is PSEP’s third participation in upstream producing assets, after the successful farm-ins into MLNG Satu PSC and Kumang Cluster PSC in 2021, Petronas said.