BY NURA V LORNA and NURIN PATRA
THE Sarawak Gas Roadmap Summit on Monday (Nov 25) provided a unique platform for key stakeholders to gather insights on the state’s ambitious energy and climate initiatives.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg outlined his vision for Sarawak’s role in driving the green economy and tackling climate change, while addressing questions from industry leaders and investors.
During a fireside chat moderated by Global Vice Chair of the Public Sector Practice at Boston Consulting Group, Vincent Chin, the Premier gave insights on the strategic plans for gas reserves, carbon capture utilisation and storage (CCUS) technology, infrastructure development, and the future workforce in Sarawak.
Below is an excerpt from the engaging Q&A session, where the Premier discussed the state’s direction and opportunities for collaboration.
Chin: Good afternoon, Premier. It is a pleasure to be with you here today. This is a Fireside Chat. There’s no fire, but the fire is in the bellies of all the people here today. There are more than 100 companies representing investors and developers along the entire energy value chain, as well as the downstream industries like the digital economy. I think 500 of us are here in the room, so I feel a little bit of a heavy, hot responsibility putting some questions to you. Your speech was inspirational. All inspirational speeches raise two points: one, curiosity, and two, action.
Premier, you talked about economic growth for Sarawak, and you talked about sustainability. In some circles, some people question whether there is a balance that can be found to do both of these. What is your formula to get the balance right?
Premier: You know, the Kyoto Conference, the Paris Conference, followed by Dubai, and now in Baku, Azerbaijan, issues on climate change are serious. We cannot just overlook this international global challenge on climate change. Over the years, we have seen a lot of natural catastrophes, floods, where the pattern has changed.
In other words, you cannot predict what will happen because the trend is no longer, the pattern is no longer there. Disrupted pattern. In a lot of these backgrounds, scientists say fossil fuels are the culprit.
A lot of carbon is being emitted, and it has already affected the whole world. Then they made a target of 1.5 degrees Celsius as a benchmark above pre-industrial levels. Today, it is above 1.5. And they also say that humankind cannot survive in that sort of environment.
So what is the solution? The solution is for you to mitigate carbon emissions. To mitigate it, there must be a replacement for carbon. And people talk about renewable energy.
Renewable energy means you have to find alternatives to fossil fuels. Meaning, they say hydrogen is the cleanest, and methane is the next fuel, which is not like coal or crude oil. Having said that, governments of today must find a formula.
While on one hand, you want to grow your economy, on the other hand, you have to balance that growth with sustainability. The question is whether humankind — mankind — can survive in the future or not with the growth of what we are doing now. So, based on that, as head of the state government of Sarawak, I tried to find a balance.
I attended the environmental Conference of the Parties (COP) and then I identified the strength that Sarawak has to contribute to the international global challenge. When I was in school, I was taught about water. Having two molecules, that is hydrogen and oxygen, H₂O.
And hydrogen is the cleanest fuel. So, what do you do? Since you’ve got water, why not extract that hydrogen out of water? Now, to extract that is very expensive because the technology around now, electrolyzers, is still very expensive. But then, I remember when we were in school, when you studied computers, information technology, IT, you had to use a punch card.
But today, in your hand, in your telephone. In other words, technology will advance and become more efficient. If it happens to computers, I have a feeling it will also happen to hydrogen.
That’s why I opt for hydrogen. And, water — you get hydrogen. Methane — I think scientists, a lot of scientists here, CH₄ — also has hydrogen.
So, you extract that hydrogen component from methane, and it becomes blue. I think that’s where technology is important. Alternative solutions are important.
And you try to get the two together and balance with the problem of climate change.
Chin: Thank you, Premier. Mother Earth created the moment, but the moment needed a man.
So, thank you for having this vision and actually already starting to bring it to life. There are projects in Sarawak on hydrogen, on methane, on gas.
But on that note, I wanted to check with you. This vision, this roadmap, was announced just three years ago, and it is already being brought to life.
And it’s being brought to life by a company that is only seven years old, Petroleum Sarawak Berhad (Petros). That is a state oil company.
What do you foresee of their role, Premier? Of the role of Petros in this journey to bring this vision to life?
Premier: Having said what I said just now, I think we know that Sarawak has the largest reserve of gas. We are still committed to our present contractual obligations to Malaysia LNG. But we’ve still got excess reserves.
The question is how you want to get the reserve out from the seabed. Previously, they said it was quite difficult to get sour gas because of a lot of CO₂.
What are they going to do with the CO₂ in that reserve? But today, you can inject CO₂ back into the earth. So, in other words, the sour gas can become sweet gas. And with that sort of technology, I feel that Sarawak’s reserve, that 60-over per cent, of the excess gas, can be used for other industries.
So, you know, I asked the top management of Shell, even Petronas — I asked them — if you study the belt of Borneo, the top is Kimanis, Sabah. They are rich in gas. You go down towards Brunei Bay — gas, Brunei.
Down to Baram. Down again, Mukah-Balingian. And down again, I believe, the western part of Lundu, Kuching.
And up again, you meet Natuna. Then Natuna is Papua. So the whole belt is a gas region.
Just like the Gulf. So, I asked Petronas. Of course, some of these people want to hide. You know, even Shell, they want to hide.
But when I explained that geological formation, where you have that gas reserve, I mean, technology is there. We can find that. So, because of that excess gas, I formed Petros when I became CM.
Of course, I was asked, why did you form Petros when Petronas is around? At that time, the former Prime Minister. So, I told the former Prime Minister, Datuk Seri Najib Tun Razak at that time, is it wrong for me to form a company under the Companies Act? It’s just an ordinary company. They can work with Petronas.
So, the Prime Minister said, OK, OK, OK. So, that’s how I started with Petros. And the mandate to Petros is to explore that possibility and get involved in a new economy based on gas.
Chin: And I must say, Premier, that the good men and women of Petros are indeed very much doing that. And I think we see some of the vision coming to life now. You talked about sour gas.
But you also talked about the fact that Sarawak has the best Carbon Capture, Utilisation, and Storage (CCUS) technology and capability in Malaysia. This really spells the ability for Sarawak to launch and become a low-carbon hub, not just for the state, but, as you said, for the country and for the region.
In this journey of becoming the low-carbon hub for the region, what are the specific role model behaviours that you think Sarawak can emulate for the world?
Premier: You know, first of all, Sarawak is only in the northern part of Borneo, with a population of about 3 million, 2.9 million. Very small population. But God is great. God has blessed us with all these resources.
The only thing is, how are you going to add value to these resources so they can be shared by everybody, including the 3 million and beyond? So what we’ve done is, I asked Petros to look into CCUS. This CCUS is something new. It’s very new.
And I brought my team to the Northern Lights in Norway to see how they manage CCUS there and how they have developed formulas that align with the interests of the country, the nation, and the region. You know, I went to the United Kingdom (UK), and they have special legislation that encompasses the interests of the United Kingdom as well as Scotland, because of the North Sea. Right? They have that legislation, and they’re doing quite well.
The same goes for Belgium. Belgium has a region called Flemish (commonly called Flanders). When they signed with Denmark, both the Flemish regional government and the federal government of Belgium signed together.
So, in other words, in a Federation, a formula can be worked out. A formula, meaning the federal government of Malaysia and Sarawak, can work together to establish CCUS trade between two countries.
And Sarawak has that strength in CCUS storage. Once you’ve got the belt of gas reserves, surely the depleted wells can be used to inject carbon, and people can just store carbon in our region. And it is part of our land.
So we have our own Land Code. That’s why I said there is a formula that can be worked out to address the interests of all parties in this. And I think we have assigned Petros to be the resource manager, and we will definitely develop CCUS based on international practices. And that is the key for us.
Chin: I really like the way you describe it, Premier, that for things to happen, the right regulations and the right policies need to be put in place, along with the right partnerships and collaboration.
There are two elements that I know are on the minds of investors around the table, and I would also invite you to put your questions to the Premier on Slido.
But there are two questions usually on their mind. Number one, they know you have the raw materials, they know you have the natural resources, and under your leadership, Premier, they believe the regulations and the right policies will happen. But can you build the infrastructure fast enough? That’s the first question.
The second question on their mind is, do you have the human capital? Do you have the skilled workforce they need to run the companies they want to set up in Sarawak?
So what are your thoughts on infrastructure development and human capital development in this case?
Premier: First of all, we have to identify our weaknesses. I know that the urgent need is infrastructure. That’s why we have this low-carbon port, a new airport, and also water supply — all these basic infrastructures in place.
When I became CM, that was the first thing that I did. Besides the (Pan) Borneo Highway, we also have our coastal road. I think this is the first time in the history of Sarawak that we built bridges all in one go, using our own funds.
And that is, you know, I had to devise how to finance it. But thank God, by 2027, it will all be finished. In other words, discharged. We paid the whole lot — RM12 billion — and plus the road, RM20 billion.
Now, having said that, we are now — as I mentioned earlier about the gas roadmap — building all the basic infrastructure, including the… actually, last night I was with the engineers.
I tried to avoid it, to tell them that we are going to build an island right in the sea, but today, it is there. That is the port, the new deep-sea port that we are going to build. Shanghai has it. And then we have this gas terminal infrastructure.
The next question is the workforce. That’s why I want to give free tertiary education to all Sarawakians. By 2026, it will be all free.
This is to ensure those with the latest knowledge can participate in this industry. That’s number one. Number two, we allow expatriates to come.
There will be interaction between the expatriates and the locals. And our objective is not only for Sarawak. Our objective is to contribute to the global challenge on climate change.
In other words, we allow foreigners to come and let them contribute together. Of course, there is an English proverb that says, “When in Rome, do as the Romans do.” When in Sarawak, do as Sarawak does.
In other words, there must be collaboration between foreign input and local input, which will generate economic growth. So, to answer your second question, don’t worry. We have an open and liberal policy on that.
Chin: That’s very good to hear because we know that human capital development takes time. Therefore, whilst you are developing your own workforce, you do need the expatriates to come in.
But Premier, since you are able to tread across many topics, let me throw one more into the pot.
You talk about the environment, yet you talk about the economy, and then you talk about the workforce and the people. What about the communities? How is all this development —what is your vision for ensuring that the development that we are seeing here will actually engage the community and allow us to work in harmony with the community?
Because we all know that Sarawak is a land rich in culture and in tradition. So what are your thoughts on that? I think it’s not a problem as far as Sarawak is concerned.
Premier: I think there is no problem as far as Sarawak is concerned. Sarawakians are Sarawakians. They are very hospitable people. We engage.
And there are a lot of intermarriages in Sarawak. Chinese marry Malays, Chinese marry Ibans, Ibans marry Orang Ulu. So, I call the new generation hybrid Sarawakians.
There is a cultural fusion. And once you have that understanding, irrespective of your religious beliefs or racial background, as long as they don’t waste time and have work to do, they forget about these things because they have work to do.
Those who create problems are those who have no work. These people who have time to spend — these are the ones creating problems. As far as we provide employment for them, they are working and have no time for gossip.
You see the people here, they are all hardworking. They don’t gossip, but they want to know what the roadmap for Sarawak is so that they can contribute. So, I welcome all of you to contribute to Sarawak’s development. Thank you very much.
Chin: I remember that… I asked you about your high-octane lifestyle. I think that’s the answer.
You have a lot of work to do. That’s what keeps you going. Can I invite any questions on Slido? Maybe you can put up the Slido QR code for any participants here to pose questions to the Premier.
There are a lot of investors here. Some of them have already invested. You saw the exchange of those agreements just now.
Those are not MoUs; those are binding commitments that investors want to put into Sarawak. What other messages would you have for the investors who are interested in Sarawak? Because around the region, there are multiple economic zones, special economic zones, and multiple hubs, all trying to attract investors. Why Sarawak? Why is it special?
Premier: You know, these people, the investors, basically what they do is they want to identify opportunities.
Number two is the bottom line. I don’t think they will come if there is no bottom line. And the bottom line must be positive, not negative.
So if they feel that Sarawak can contribute to that positive bottom line, and we have the ingredients there, the best is to get the ingredients and make a cake out of it. So the cake is there. You can sort of share the cake.
Because what is important here, you know, when you notice Sarawak, Sarawak is central in Asean, with 700 million people. And you have India on one side. And you have China on the other side.
The two already have half the world population. These people need something. And then you have the Far East.
Then we are just in the middle. So what I’m saying is we share. And that will be needed by the market. So it’s up to them to decide. After all, it is the bottom line.
Chin: It is true. And I think that the investors who are signing the agreements here recognise the business case of investing in Sarawak. I was waiting for some questions from the floor. I have one, thought that I wanted you to share with the group here.
If there is one single most impactful step all these hardworking people in this room can take to advance this vision of the Sarawak gas roadmap, what would it be? The one thing that most people here can do.
Premier: Sincerity and collaboration. That’s all.
I mean, you are sincere in facing or finding solutions to the world’s global challenges. To me, climate change is a challenge. So, in other words, you are sincere enough to find a solution, and if you have the solution, you come and work together.
Chin: I mean, that’s all. And what means of collaboration will the state offer to these investors here?
Premier: We join together. Either through a joint venture, and you put in your equity, and then you serve the whole region that needs this particular product, which is green in nature.
And it’s low-carbon in nature. What is important now is the banking sector. They have to play their part too.
At COP29 in Baku, I was informed — I mean, I read — that we together put 300 billion US dollars to finance all these projects. The financial sector must also play its part in order to finance, because the risk is there. But surely, you can calculate the risk, and based on the needs of the whole economy, the bank has to play its part.
Chin: And the roadmap actually outlined a list of bankable opportunities, and in fact, Sarawak state has its own bank too to help finance some of these deals.
Premier: That’s why we formed DBOS. Actually, Petros and DBOS were formed at almost the same time.
And now we are fortunate enough to take a majority stake in a commercial bank in Malaysia.
Chin: So you said it really well. Sincerity in tackling one of the most existential problems in the world, but with a government that is prepared to collaborate and already has the leverage to collaborate — not just in providing regulations and an enabling environment, but also to provide technical help from Petros and financial help from the bank.
Okay. So, with that, Premier, I would like to wrap up this fireside chat. It’s been a real pleasure. But do you have any closing words to the audience?
Premier: I welcome them to engage with our government through the various ministries if they find that what I have shared this morning sparks their interest, so we can work together for the betterment of mankind. Thank you very much.
