MOSCOW (MRC) -- Petroliam Nasional Berhad (PETRONAS) and Petroleum Sarawak Berhad (PETROS) signed a Memorandum of Understanding (MOU) on a staggered increase of natural gas supply to Sarawak for the implementation of projects under the Sarawak Gas Roadmap, said the company.
The signing of the MOU took place at a hotel here, in the presence of Sarawak Chief Minister, Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Johari Tun Openg and PETRONAS Chairman, Tan Sri Dato’ Seri Mohd Bakke Salleh.
Signing on behalf of PETRONAS was Executive Vice President and Chief Executive Officer of Upstream, Adif Zulkifli while PETROS was represented by its Group Chief Executive Officer, Datuk Sauu Kakok. It was witnessed by Senior Vice President of Malaysia Petroleum Management, Mohamed Firouz Asnan, PETROS' Chairman of the Board, Tan Sri Datuk Amar (Dr) Hamid Bugo and Director of Economic Planning Unit Sarawak, Datu Dr Mohammad Abdullah Zaidel.
Speaking at the ceremony, Tan Sri Mohd Bakke said, “The staggered increase envisaged under the MOU which would ultimately bring the total domestic gas allocation to 1.2 billion standard cubic feet per day would not only support the State’s aspirations to attract investments from new, higher value-adding industries into Sarawak but would also provide the necessary impetus for further upstream exploration that would strengthen the State’s hydrocarbon resource base."
As per MRC, Petroliam Nasional Berhad, or Petronas, said it aims to become a net zero emitter of greenhouse gases by 2050 and also plans to increase its investments in renewable energy. Burning of oil and gas accounts for the vast majority of the world’s carbon emissions, and many investors have pushed global oil majors to do more to combat climate change.
As MRC wrote earlier, in June 2019, Malaysian state oil company Petroliam Nasional Bhd, or Petronas, and Saudi Aramco started operations at their new 1.2-million-tonnes-per-year naphtha cracker. The cracker is part of the USD2.7 billion joint-venture oil refinery and petrochemical project known as RAPID - or Refinery and Petrochemical Integrated Development - located in Pengerang in the state of Johor, at the southern tip of peninsular Malaysia.
PETRONAS currently has existing agreements to supply natural gas to the power and non-power sectors in Sarawak and is actively encouraging sustained upstream investments in exploring more gas resources and further developing discovered gas resources, particularly in Sarawak.