Petronas Delivers Fresh Gas Supplies to New Methanol Facility

Malaysia's energy giant, Petronas, has commenced the delivery of gas from the Bintulu Additional Gas Facility (BAGSF-2) to a newly established methanol plant in Sarawak, a state in East Malaysia. This development signifies a crucial step in supporting the growth of the petrochemical industry within the region.

The initial delivery of gas from Petronas Carigali's BAGSF-2, facilitated by a newly constructed pipeline, serves as the essential fuel source for the commissioning of Sarawak Petchem's world-scale methanol plant. With a substantial design capacity of 390 million standard cubic feet per day of gas, the BAGSF-2 facility is well-equipped to meet the demands of the new methanol plant, amounting to 160 million standard cubic feet per day (MMcfd), as well as an additional 70 MMcfd allocated for Sarawak Energy's existing power plant in Bintulu. The remaining capacity is earmarked for other projects identified within the Sarawak Gas Roadmap, all centered in the Bintulu region.

Mohamed Firouz Asnan, Senior Vice President of Petronas' Malaysia Petroleum Management, expressed the significance of this additional gas supply, emphasizing that it will play a pivotal role in advancing the downstream sector's growth in Sarawak, particularly in the Bintulu area. He underlined Petronas' commitment to supporting Sarawak's aspiration for extensive downstream development, founded on the principle of 'Amanah,' which signifies a responsible approach to harnessing hydrocarbon resources in Malaysia for the benefit of its people.

This project underscores the strategic partnership between Petronas and the state government of Sarawak, with roots dating back to 2016 when an agreement was first inked. The agreement entailed Petronas supplying a total of 450 MMcfd of natural gas to Sarawak, intended for power generation and for use within state-owned petrochemical industries. This collaborative endeavor laid the foundation for the construction of the BAGSF-2 facility.

Fast forward five years, and Petronas further solidified its commitment to Sarawak's energy needs. In doing so, the energy giant signed another Memorandum of Understanding to increase gas supply to an impressive 1.2 billion cubic feet of gas per day for Sarawak. This significant expansion of gas supply reflects the dedication of both Petronas and Sarawak to advancing the region's energy infrastructure and supporting its burgeoning petrochemical industry.

The commencement of gas delivery from BAGSF-2 to the new Sarawak methanol plant marks a pivotal moment in the region's economic development. It not only ensures a stable and robust supply of gas for industrial processes but also strengthens Sarawak's position as a key player in the petrochemical sector, fostering economic growth, job creation, and further investment opportunities in the state.

As the global demand for petrochemical products continues to rise, Sarawak's strategic partnership with Petronas positions it favorably to capitalize on this growth trajectory. The establishment of the world-scale methanol plant, supported by a reliable and ample gas supply, places Sarawak on the map as a significant contributor to the petrochemical landscape, both regionally and internationally.

Furthermore, this collaborative effort underscores Petronas' role as a responsible and forward-thinking energy company committed to leveraging Malaysia's abundant hydrocarbon resources for the benefit of its people and the sustainable development of the nation. By fostering partnerships, investing in infrastructure, and prioritizing responsible resource management, Petronas continues to play a crucial role in advancing Malaysia's energy and petrochemical sectors while contributing to the broader economic prosperity of the nation.