KUALA LUMPUR: Synergy between the Sarawak and the federal governments is crucial to ensure continuous development of the oil and gas industry in Malaysia.
Deputy State Secretary (Planning and Economic Development), Datuk Dr Muhammad Abdullah Zaidel said cooperation and good relations will create more development opportunities in the industry.
“When Petronas decides to allocate a certain amount of natural gas to our state government, for example, 450 MMcf/d (million cubic feet per day), with this understanding, Petronas is actually giving the Sarawak government a special priority rate to develop the petrochemical industry, where we are establishing one of the largest methanol production plants in Bintulu, which should be operational next year,” he said.
This means that Petronas is supplying gas to Sarawak, and the Sarawak government entity can develop that facility into a synergy rather than quibbling about it, he added.
“This should serve as an example to be followed by the whole world … showing that they are stronger than other countries will not solve problems,” he was quoted as saying in an UKAS report.
Abdullah made these remarks during the ‘Asia Opportunities: Building a New Partnership’ parallel session held at Energy Asia 2023 in the Kuala Lumpur Convention Centre on Monday (June 26).
He added that as a state dependent on oil and gas resources, Sarawak has contributed nearly 60 per cent of Malaysia’s oil and gas exports, making it a major player in the country.
On the establishment of Petros, a government-owned entity, he said it would not disrupt the development of the oil and gas industry but instead add value to it.
The Commercial Settlement Agreement (CSA) between Petronas and Petros, he said, demonstrates Petronas’ recognition of Sarawak’s important role in industrial development.
“We are grateful that as Malaysians, we can sit together and discuss the best ways to move forward instead of arguing and wasting time,” he added.
Also present during the session were S&P Global director for Upstream Transformation Rachel Calvert, Xcoal Energy & Resources founder and chief executive officer (CEO) Ernie L Thrasher, SCG president and CEO Roongrote Rangsiyopash and Japan Bank for International Cooperation board chairman Tadashi Maeda.
