PETROS explores Sarawak’s CCUS storage

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Awang Tengah (centre) chairs the third meeting of Sarawak’s Petroleum Advisory and Coordination Committee (PACC).

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Petroleum Sarawak Berhad (PETROS), the manager for Carbon Capture, Utilisation, and Storage (CCUS) resources in Sarawak, is embarking on further studies to establish a Sarawak Storage Atlas. The aim is to identify potential CCUS storage sites in the state. Deputy Premier Datuk Amar Awang Tengah Ali Hasan revealed that PETROS is conducting seismic acquisitions and promoting potential sites through a Sarawak Bid Round exercise for interested CCUS developers and investors. The progress of CCUS projects, developed in collaboration with Petroliam Nasional Berhad (PETRONAS), PTTEP of Thailand, and Japanese Consortiums, was discussed during the third meeting of Sarawak’s Petroleum Advisory and Coordination Committee (PACC) chaired by Awang Tengah.

Awang Tengah emphasized that PETRONAS, in its engagement with the Sarawak government, has assured compliance with relevant state laws, particularly the Distribution of Gas Ordinance (DGO) 2016 (Amendment 2023). PETRONAS is committed to working collaboratively with PETROS to ensure a seamless transition of the Gas Aggregator role. The committee’s objective is to enhance Sarawak’s participation in the oil and gas industry, both upstream and downstream, fostering economic growth and creating local job opportunities by fostering cooperation among ministries, agencies, and PETROS.

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During the meeting, progress reports were presented by the subcommittees responsible for Gas Distribution, Industry Promotion and Investments, Regulatory and Compliance, and Policy, Environment, and Sustainable Energy. Awang Tengah expressed satisfaction with PETROS’ progress in advancing the Sarawak Gas Roadmap (SGR) projects, such as the Miri 500 megawatt (MW) Combined Cycle Gas Turbine (CCGT) power plant, Samalaju gas pipeline, and the Kuching Hub and its associated infrastructure. Sarawak aims to achieve a state power generation capacity of 10,000 MW by 2030, with 30 per cent generated from non-renewable sources, primarily natural gas. Proper energy planning and access to reasonably priced natural gas are crucial for realizing the high-technology investment potential in Sarawak.

A significant highlight of the meeting was the ongoing discussions between PETROS and PETRONAS regarding PETROS’ role as Sarawak’s gas aggregator. These discussions are progressing well and are expected to conclude by July 1. The Committee also welcomed two new appointments: Datu Saferi Ali as the State Attorney General, effective September 7, 2023, and Datuk Abdullah Julaihi as the permanent secretary, effective May 1.

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The Committee expressed its appreciation to Datuk Sr Zaidi Mahdi for his contributions during his tenure as the permanent secretary for the Ministry of Urban Development and Natural Resource Sarawak (MUDEnR). The meeting concluded with updates on the state’s investment ranking and evaluation process, compliance with licensing requirements under the DGO 2016, progress on onshore exploration for potential oil and gas production in Northern Sarawak, and the involvement of Sarawakian companies in oil and gas contracts within and outside Sarawak.

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