Sarawak to invest RM6bil in low-carbon ammonia and urea plant

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Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg also seen Datuk Amar ouglas Uggah Embas at the opening of the Sarawak Methanol Complex in Tanjung Kidurong, Bintulu. Photo: Ghazali Bujang

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BY JAMES WONG & NURA V LORNA

BINTULU: Sarawak will invest RM6 billion to develop a low-carbon ammonia and urea plant in Bintulu, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He said the ammonia plant will be located next to the Sarawak Methanol Complex, with construction set to begin by 2025, pending the negotiation process and feasibility studies.

He said the entire project is expected to be completed by 2030.

“We will start this project with Petros supplying 160 MMSCFD (million standard cubic feet per day) of gas to Sarawak Petchem for ammonia production.

“From ammonia, we will produce urea, meaning we will have our own fertiliser production.

“Ammonia is used in the shipping industry, while urea will be used in our fertiliser processes, linking to the food sector and food security,” he told a press conference after launching the Sarawak Methanol Complex at Tanjung Kidurong today (July 22).

Abang Johari added that this initiative aligns with a new approach to food security through large-scale paddy planting.

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“Naturally, we need fertiliser for paddy, pineapple, and coconut cultivation. Experts will determine the specific fertilisers needed for different soils, with nitrogen being the basis for enriching soil nutrients.

“Therefore, we decided to produce our own urea for use in Sarawak and for export. This value chain we are building in Sarawak uses our own resources.

“This initiative will require a workforce with STEM backgrounds, so I urge parents to encourage their children to pursue these fields, as they are highly needed in this industry,” he added.

This initiative is part of the Sarawak Gas Roadmap, which involves transporting gas from the source through pipelines, bringing it onshore, and distributing it.

According to Abang Johari, this roadmap focuses on downstream gas facilities, as the gas is processed to produce various derivatives such as ammonia, urea, and paint.

These facilities will be developed in sequence, contingent on gas availability.

“Petros acts as an aggregator, meaning gas must be purchased from Petros.

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“Sarawak Petchem has signed an agreement to buy 160 MMSCFD of gas for the construction of the ammonia plant, forming a chain of developments, all currently owned by Sarawak,” he added.

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