Sarawak to build ammonia plant instead of second methanol plant - Abang Johari

BINTULU - Sarawak has decided to shelve its plan for a second methanol plant in Tanjung Kidurong with a project to produce ammonia, said State Premier Tan Sri Abang Johari Tun Openg.

He said he had requested Sarawak Petchem Sdn Bhd to review the proposed second methanol plant as Sarawak has already a plant producing it.

"The second plant will be based on ammonia as we see that the market is there for ammonia, particularly in Europe, the Far East and Asean countries.

"Because of that, I have requested Petchem to set up a plant in Bintulu. This is something new, blue ammonia. If you calculate the return of this investment, it is guaranteed, depending on how you market your product,” Abang Johari said at a ceremony to commemorate the readiness of the Bintulu Additional Gas Sales Facility (BAGSF-2) to deliver the gas in Tanjung Kidurong here today.

Abang Johari stressed that petrochemical and power industries are two important approaches for Sarawak to achieve its Post-Covid-19 Development Strategy 2030.

"I am keen to see the growth of these two sectors contributing towards the creation of jobs in Sarawak, keeping with our plan to see the workforce expand close to 195,000 jobs while narrowing the development gap between the urban and rural Sarawak,” he said.

With improved access to energy, Sarawak can accelerate its digital adoption, allowing for better ease of doing business, better-developed people and better optimising the use of its assets.

The premier also said that the collaboration between the region and Petronas had been quite well under the Commercial Settlement Agreement and both parties could collaborate further, particularly in the downstream activities.

Abang Johari stated that Prime Minister Datuk Seri Anwar Ibrahim recognised Sarawak’s desire to explore new technology to generate energy not just for itself but also for its neighbouring regions.

"With all the basic feedstock available, Sarawak wants to contribute to the region and become the hub of Asean in terms of energy,” he said. - BERNAMA