Latest news with #PetroleumSarawakBerhad
Daily Express
13 hours ago
- Business
- Daily Express
High CO2 levels no deterrent for Sarawak
Published on: Friday, July 25, 2025 Published on: Fri, Jul 25, 2025 By: Sherell Jeffrey Text Size: L/R: Arabi, Hanh Le, Diofanny and Fairuz. KUCHING: Half of Sarawak's natural gas reserves contain high levels of carbon dioxide (CO2), making them difficult to extract and use, but technology is turning this into a multi-billion-ringgit opportunity. 'For Sarawak, the importance of Carbon Capture, Utilisation and Storage (CCUS) technologies is profound,' said Petroleum Sarawak Berhad (Petros) Resource Management Senior Vice President Datuk Abang Arabi Abang Narudin. 'It is about robust economic growth, securing high value jobs, diversifying our economy, ensuring energy security and cementing our position as forward-thinking players in this global energy transition,' he said at the recent International Energy Week Summit (IEW) 2025's Panel Discussion where industry experts challenged skepticism about CCUS technology's effectiveness and viability. The summit, hosted by the Sarawak Energy and Environmental Sustainability Ministry and organised by Informa Markets, a world leading market-making company, brought together regional experts to discuss how CCUS technologies can transform the oil and gas sector towards sustainability. Daily Express was among those invited for the event held at the Borneo Convention Centre Kuching, here. What exactly is CCUS? CCUS is a technology that captures CO2 from industrial processes before it enters the atmosphere, then either uses it for other purposes or stores it safely underground. For Sarawak, this technology holds promise. 'We are blessed with many natural resources, we sit on top of 65 per cent of the geological formation that is ideal and best for the CCUS,' said Abang Arabi. 'If you look at our natural gas resources, we have vast natural gas resources, but 50 per cent of our remaining resources are contaminated gas with high CO2. 'Hence, CCUS is important for us to unlock the value from these resources,' he said, adding that Sarawak wants to harness that and position itself as a leading player in the region for CCUS. He said technology optimisation, financing, policy certainty and infrastructure development are four key factors needed for CCUS' success. 'We are looking at using CO2 in combination with hydrogen, for example, create e-methanol, e-methane,' he said, pointing out how Sarawak is exploring innovative applications. 'When hydrogen becomes cheaper and cheaper to produce, it makes sense for us to go for synthetic gas or synthetic fuel through CO2,' he said. Sarawak is also looking at proprietary technology that combines CO2 with gas to produce hydrogen and chemical feedstock. 'It is a technology called HYCO1. This is something that we are exploring. It is in its early days. I think they are ready for a pilot in the near future,' he added. Additionally, Sarawak is developing two CCUS hub to create shared infrastructure and achieve economies of scale. 'The whole intent and purpose is to have a common shared infrastructure for us to have economy of scale and make CCUS more affordable,' he said. When asked about environmental risks from storing CO2 underground, Abang Arabi, who is a geophysicist by training said, 'If you look at our reservoirs, the oil and gas has been deposited there for millions of years without leakage. It needs us to poke a hole and drill to bring it out.' One common criticism of the CCUS technology is that it is expensive and complex while offering limited environmental benefits. The panel disagreed with this assessment. Asia Natural Gas and Energy Association (ANGEA) Singapore Senior Advisor Hanh Le said CCUS is a technology that provides large scale decarbonisation. 'It is probably the highest scale of mitigation options that are available to us right now,' she said, adding that public acceptance and policy harmonisation are important in the CCUS. 'If you want to build a regional CCUS hubs and CCUS as a regional business model, we need that policy certainty related to liability, how you manage the liabilities not just operational liabilities, but also from emission accounting liability as well,' she said. 'ANGEA has implemented many carbon, capture and storage (CCS) projects in the world, notably Gorgon in Australia, Chevron. Risk is low and environmental assessment has been done,' she said. She said Singapore is also expanding its CCUS footprint with three flagship projects spanning from western to eastern Indonesia and awarding new license areas for carbon injection working areas. 'Lack of public acceptance often come from misunderstanding. When people understand, they will be a lot more willing to accept,' said Hanh Le pointing out that education is key. Meanwhile, Indonesia Carbon Capture and Storage Centre (ICCSC) Strategic Initiative Director Diofanny Swandrina Putri said CCUS has numerous benefits that are more than just environmental impact. 'When you do something, you gain something, right? Even though we know it is expensive and difficult, but if you are looking towards the advantage that we can gain in terms of economic growth, value chain, job creation and green future, I think it is worth a try,' she said. She said for Indonesia, the CCS could support up to 70 per cent of the country's decarbonisation efforts, a notably higher contribution than the global average of 11 per cent. 'We also partner with the World Bank, International Finance Corporation and the Asian Development Bank who have this urgency to fund CCS projects,' she said, pointing out strong international funding appetite for CCS projects. 'There are a lot of technology providers coming to the ICCSC offering huge potential of the carbon capture technology. They say they can reduce the cost until 70 per cent, going from $100 per ton to $30 per ton,' she said. One of the most intriguing aspects of CCUS is the potential to turn Co2 from waste product into something valuable. 'First, as an asset that is traded, carbon credits. Second is carbon as feedstock, like carbon utilisation. Third is carbon as a circular economy,' Diofanny said, outlining three ways this could happen. 'Research from Oxford University shows that when CO2 is injected more than two kilometers underground according to international standards, the risk of leakage over 100 years is only 0.02 per cent,' she added. She acknowledged that public acceptance remains a challenge. Indonesia's approach involves engaging young people early. 'We are trying to involve youths and the ICCSC is launching the first CCS student chapter in the world. 'They are the ones who is going to do this for the next 20 years, 30 years and we need them to get onboard with us,' she said. Indonesia is also working on regulatory frameworks and international cooperation. 'We want to launch business license for the CCUS, because if you want to do business in Indonesia, you need to get the business license. 'We are also working towards government-to-government (G2G) agreements together with Singapore. We signed the MOU for the CCUS cross-border last June,' she said. Contrary to popular belief, the CCUS technology is not waiting for some breakthrough innovation. 'The CCUS technology has existed for many years,' said Aker Solutions Consultancy Director Ahmad Fairuz Mohd Amin. 'CCUS is like flossing your teeth. If you do not do it, then you realise one day there is a cavity in your tooth and then you start hurting yourself. It is something that is inevitable. You just need to do it,' he said, adding that Aker Solutions has been involved in CCUS projects since the 1990s. 'It is really about continuous optimisation, lowering the cost to make it more affordable,' he said. He said Aker Solutions is also involved in the world's first CO2 injection in Sleipner and more recent projects in Norway. The company has also worked on the Longship CCUS programme, which includes the Northern Lights project and the Brevik CO2 cement plant, the first capture facility of its kind in the world. 'The Brevik has captured around 400,000 metric tons of CO2 last month, being transferred into Northern Lights,' Ahmad Fairuz said. 'We have gone through all the bruises, blood and tears trying to execute CCUS. It is no easy task. What I mean is, financially we got hurt,' he said. However, he pointed out that costs will decrease as the technology becomes more standardised. 'Look at solar in 2005, and today, you see the cost going down. Thus, I think we must start and then it will go to that path of cost reduction,' he said. Moving forward, he said they recently signed with some partners on a technology called Zero Emission Unconventional Power System (Zeus) which uses oxy-combustion technology. 'Oxy-combustion is not new. It has been there for ages but we want to make it small footprint, lightweight. 'We are trying to bring power plant directly offshore, avoid having pipelines or gas processing plants. The system uses rocket engine technology adapted for energy production. 'We went to the US, brought a rocket engine and put it inside the system. The first pilot plant will be in Malaysia,' he said without disclosing its exact location except that it requires hundreds of millions of ringgits. Interestingly, the Zeus system can handle extremely high CO2 content. 'The Zeus system can take on 90 per cent CO2 as a system. Why? Because they use the same CO2 to cool up the system and enhance gas recovery,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Borneo Post
a day ago
- Business
- Borneo Post
Premier: Comprehensive central utility data system needed to consolidate location of Sarawak's pipelines, utility infrastructure
Abang Johari gestures during a photo call in front of a Sungai Plan house connected to piped gas supply. – Ukas photo BINTULU (July 24): Petroleum Sarawak Berhad (Petros) and the Ministry of Utility and Telecommunication have been tasked with establishing a comprehensive central utility data system. Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said this would consolidate the locations of all pipelines and utility infrastructure throughout the state. 'It is important to have a centralised data that can be overlaid with other utility systems, allowing for quick identification and resolution of issues such as pipeline faults or overlaps during road and development projects. 'In the past, we didn't have digital records. But now, there's no reason not to. Petros must lead in establishing a command and storage centre for utility data to manage and monitor all infrastructure,' he said during the launch of piped natural gas supply by Petros to households in Sungai Plan here yesterday. He said Petros, which marks its eighth anniversary this month, plays a critical role as Sarawak's sole gas aggregator in ensuring the state reaps direct benefits from its natural gas resources. 'Sarawak must take a more proactive role in managing its own oil and gas resources instead of simply observing while others operate within the state. 'We are not taking away everything from Petronas. We just want to manage what belongs to Sarawak. Petronas will continue their business, we are only taking a portion to ensure our own resources are managed by us,' he explained. The Premier hailed the launch of the piped gas supply in Sungai Plan as a transformative step. 'Now people can just turn on the stove using piped gas. No need to carry heavy LPG gas cylinders. With piped gas, it'll be much cheaper,' he said. He also outlined the expansion plan for the gas pipeline network, starting with Jepak and Kidurong's industrial areas by 2030 before extending to Tatau and Sebauh. He said the initiative would stimulate rural industrial development, particularly in food production by providing access to reliable and affordable gas supply. Abang Johari pointed out that Petros has invested RM3,500 per household for gas pipeline installations in Miri, with Petros covering the connection fee. He reiterated that domestic needs must take priority in gas utilisation. 'Our gas should first support local industries and economic growth before we export. While we respect Petronas' agreements with foreign companies, Sarawak's rights must be protected. 'We also need to be involved in downstream sectors, especially now that technology allows us to refine sour gas into sweet gas,' he said. Looking ahead, he expressed optimism for Sarawak's future, pointing to data suggesting the presence of onshore gas deposits across the state's western and coastal regions, including areas near Adong and possibly Kuching. 'With God's blessings and our resources, I am very confident that the future of Sarawak is bright,' he said. Abang Johari also stressed that all gas pipeline installations and connections must adhere to strict safety standards. 'Do not connect gas lines carelessly. If done incorrectly, it can be dangerous. Thank you to Bomba (Fire and Rescue Department) and other safety agencies for educating the public on how to handle gas infrastructure safely,' he said. Abang Johari central utility data system lead
New Straits Times
2 days ago
- Business
- New Straits Times
Petros launches piped natural gas to Bintulu households
BINTULU: Petroleum Sarawak Berhad (Petros) today marked a key milestone with the official launch of piped natural gas supply to households in Sungai Plan, Bintulu, bringing direct energy access to local households for the first time since natural gas processing operations began in Bintulu in 1982. Premier Tan Sri Abang Johari Openg said the launch was the first step to distribute gas to the people so they could benefit from the natural gas supply obtained from the state. "The state government has launched the broader Sarawak Gas Roadmap (SGR) so that we can supply gas throughout the state through a gas pipeline system," he told reporters after the launch. He said the distribution of gas through a pipeline was not new as it had been done in Lutong before the formation of Malaysia. He said the power to distribute gas, from the start to the buyers, must be managed by Sarawak through the appointment of Petros as the sole gas aggregator. Abang Johari said the first piped gas to the Sungai Plan project is Petros' first residential piped gas supply initiative in Bintulu and marks a tangible step towards bringing Sarawak's gas resources directly to its people. Petros group chief executive officer Datuk Janin Girie, in a statement, said the pilot phase involved the construction of a dedicated reticulation system, which includes a newly built city gate station, over 3km of distribution pipeline, and internal piping for the initial 39 connected households. He said Petros aimed to extend gas coverage to over 3,500 households in the Sungai Plan area by the end of 2027. He said this infrastructure delivers natural gas directly to homes for cooking and other domestic uses, offering residents a cleaner, more convenient, and cost-effective alternative to liquefied petroleum gas (LPG). "By providing direct access to natural gas, we are delivering a cleaner and more affordable energy solution to local communities while supporting Sarawak's broader socio-economic ambitions," he added. In addition to improving convenience and affordability for households, he said the piped gas initiative supports the longer-term industrialisation of Bintulu and surrounding areas. Under the Sarawak Gas Roadmap (SGR), Bintulu has been designated as one of four strategic gas hubs alongside Miri, Samalaju, and Kuching. These hubs form part of a statewide "Hub-and-Spoke" model that aims to deliver consistent and reliable gas supply to both urban and hinterland areas across Sarawak. Investments in supporting infrastructure are well underway. In Bintulu, Petros is constructing the 65km Samalaju Pipeline (SPL) to supply natural gas to the Samalaju Industrial Park, including to the 1,500MW Combined Cycle Gas Turbine (CCGT) Power Plant currently under development. Petros is also progressing works on the Gas to Bintulu (GtB) Trunkline Project, extending the transmission gas pipeline from the Kidurong Industrial Area to Jepak and Samalaju Industrial Park Ringmain (SIPR), which will further enhance intra-zone gas distribution. For areas not yet connected to pipelines, Petros is implementing a Virtual Pipeline System (VPS) using modular transport to deliver natural gas via road and sea. The first customer in Kuching is expected to receive supply via VPS by end-2025, with a broader rollout planned for 2026. As the sole Gas Aggregator for Sarawak, Petros plays a central role in developing and managing the state's gas distribution system. These efforts aim to raise Sarawak's domestic gas utilisation from 6 per cent to at least 30 per cent by 2030, in alignment with the Sarawak government's energy transition agenda. Among those present at the launch were Minister for Utility and Telecommunication Datuk Seri Julaihi Narawi, Food Industry, Commodity and Regional Development Minister Datuk Seri Dr Stephen Rundi Anak Utom, and Petros chairman Tan Sri Hamid Bugo.
Borneo Post
2 days ago
- Business
- Borneo Post
Petros launches Bintulu's first residential piped gas supply
Hamid (second left) presents a memento to Abang Johari after the launch ceremony. BINTULU (July 23): Petroleum Sarawak Berhad (Petros) marked a major milestone today with the official launch of piped natural gas supply to households in Sungai Plan – the first direct residential connection since gas processing operations began in Bintulu in 1982. The initiative is part of the broader Sarawak Gas Roadmap (SGR), a strategic state government plan implemented by Petros to boost domestic gas utilisation, improve energy access, and support sustainable development throughout Sarawak. The launch was officiated by Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg. Also present were State Minister of Utility and Telecommunication Dato Sri Julaihi Narawi; State Minister of Food Industry, Commodity and Regional Development Dato Sri Dr Stephen Rundi Utom; and Petros chairman Tan Sri Datuk Amar Dr Hamid Bugo. The launch also coincides with Sarawak Day and comes ahead of Petros' eighth anniversary, underscoring the state's steady progress toward a more inclusive, secure, and resilient energy future. In a statement, Petros said the Sungai Plan project is its first residential piped gas supply initiative in Bintulu, marking a tangible step towards bringing Sarawak's gas resources directly to the people. 'The pilot phase involves the construction of a dedicated reticulation system, which includes a newly built city gate station, over three kilometres of distribution pipeline, and internal piping for the initial 39 connected households. 'Petros aims to extend gas coverage to over 3,500 households in the Sungai Plan area, by the end of 2027,' it said. The infrastructure enables homes to use natural gas for cooking and other domestic needs, offering a cleaner, safer, and more cost-effective alternative to liquefied petroleum gas (LPG). 'By providing direct access to natural gas, we are delivering cleaner and more affordable energy solutions to local communities while supporting Sarawak's broader socio-economic ambitions,' said Petros Group Chief Executive Officer Dato Janin Girie. Beyond households, the piped gas initiative is designed to support the long-term industrialisation of Bintulu and nearby regions. Under the SGR, Bintulu is designated one of four key gas hubs in Sarawak, alongside Miri, Samalaju and Kuching. These hubs form the backbone of a statewide 'hub-and-spoke' model to ensure reliable gas supply across both urban and rural areas. 'Investments in supporting infrastructure are well underway. In Bintulu, Petros is constructing the 65-kilometre Samalaju Pipeline (SPL) to supply natural gas to the Samalaju Industrial Park, including to the 1,500MW Combined Cycle Gas Turbine (CCGT) Power Plant currently under development,' Petros said. The company said it is also advancing the Gas to Bintulu (GtB) Trunkline Project, which will extend transmission infrastructure from the Kidurong Industrial Area to Jepak and the Samalaju Industrial Park Ringmain (SIPR), improving intra-zone distribution capacity. To serve areas not yet connected to pipelines, Petros is deploying a Virtual Pipeline System (VPS) that uses modular transport to deliver compressed natural gas (CNG) by road and sea. The first VPS customer in Kuching is expected to receive supply by end-2025, with broader rollout planned for 2026. As the sole gas aggregator for Sarawak, Petros plays a central role in developing and managing the state's gas distribution system. 'These efforts aim to raise Sarawak's domestic gas utilisation from 6 per cent to at least 30 per cent by 2030, in alignment with the Sarawak Government's energy transition agenda,' it said. Today's launch also coincides with Sarawak Day and precedes Petros' eighth anniversary, underscoring the State's steady progress towards a more inclusive and resilient energy future. Abang Johari Bintulu lead Petros piped gas supply Sungai Plan
Borneo Post
2 days ago
- Business
- Borneo Post
Sarawak charts path to statewide piped gas access, says Premier
Abang Johari cooks tapioca as a symbolic gesture for the launch. BINTULU (July 23): Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has reaffirmed the Sarawak government's strong commitment to expanding piped gas infrastructure to every household in the state – a move aimed at enhancing energy accessibility and economic equity. Speaking to reporters after launching the piped natural gas supply to homes in Sungai Plan here today, Abang Johari said the initiative is part of a long-term master plan to ensure Sarawakians benefit directly from the state's own gas resources. 'This is just the beginning of our effort to supply gas to our people so they can enjoy the benefits of the gas extracted in our own backyard,' he said. He cited a successful pilot project in the Quadruplex Taman Ceria (QTC) housing area in Miri, where residents have seen savings of up to 40 per cent or around RM40 monthly after switching from gas cylinders to piped delivery. Determined to extend these benefits across Sarawak, the Premier unveiled the Sarawak Gas Roadmap, which outlines a statewide piped gas distribution system. 'We are developing a network of gas distribution hubs throughout Sarawak in Bintulu, Kuching, Miri, and possibly Sibu from where piped gas can be channeled to surrounding areas, even reaching remote towns like Kapit,' he said. According to him, the concept of piped gas is not new to Sarawak, citing earlier systems in Lutong, Sarawak and Seria, Brunei, that predate the formation of Malaysia. Abang Johari emphasised that Sarawak's legal framework, particularly the Sarawak Gas Distribution Ordinance, remains intact and continues to empower the state to regulate and manage its own gas sector. Under this framework, Petroleum Sarawak Berhad (Petros) has been formally appointed the sole gas aggregator for Sarawak, with full authority to manage supply from upstream to end users. He expressed gratitude to Prime Minister Datuk Seri Anwar Ibrahim for endorsing this via a joint declaration between the federal and state governments, which enabled Petros to operate as the sole legal and operational aggregator. 'All companies involved in the gas business must comply with our existing laws. This is a people-centric project, and through the hub-and-spoke model, it will benefit not just urban dwellers but rural communities as well,' he said. The roadmap, he added, will offer tiered benefits across various user groups – residential homes, SMEs, and heavy industries such as methanol production – with rates based on consumption levels. 'The greatest impact will be on ordinary Sarawakians, especially B40 households and those with lower incomes, by easing their cost of living,' he said. Abang Johari also welcomed the federal government's latest cost-of-living measures announced today, including fuel price reductions and other incentives. 'PMX announced his support, and we too are helping our people. Thank you for the initiatives. It shows that the people of Sarawak benefit both from Kuala Lumpur and from Petra Jaya, Kuching,' he said. Also present at the event were deputy premiers Datuk Amar Douglas Uggah Embas and Datuk Amar Prof Dr Sim Kui Hian, Petros chairman Tan Sri Datuk Amar Dr Hamid Bugo and other state Cabinet ministers and their deputies. Abang Johari piped gas statewide
