Latest news with #PetroleumSarawakBerhad
Daily Express
4 days ago
- Business
- Daily Express
Petros gears for more profits, jobs. Now nation's No. 3 player after Petronas and Shell within just seven years
Published on: Saturday, July 19, 2025 Published on: Sat, Jul 19, 2025 By: Sherell Jeffrey Text Size: Joseph said the Kuching project would begin with LNG-to-power infrastructure followed by industrial park development and culminate in high-value manufacturing including low-carbon hydrogen for steel production and ammonia for fertilisers. KUCHING: Sarawak through Petroleum Sarawak Berhad (Petros) is bent on creating more jobs and making sure bigger profits stay in the State by moving towards downstream processing instead of just pumping out raw oil and gas and selling them. 'For decades, Sarawak mostly just dug up raw materials and shipped them out … extract, export, repeat,' said Petros Senior Vice President of Growth Datuk Joseph Podtung. Advertisement 'There was not much processing of these materials or strong supporting businesses around them, which meant no ripple effect of economic benefits,' he said. The result, he said, has been shortened value chains, limited spin-offs and few high-income careers. 'Instead of continuing this approach, Petros is changing from simply producing large amounts of raw gas to focusing on creating products from it,' he said, citing turning natural gas into methanol, hydrogen and ammonia before advancing to more sophisticated manufacturing. 'We are not saying no to Liquefied Natural Gas (LNG). In fact LNG is important because it brings hard currency. It keeps our hub full. It makes Sarawak globally relevant. 'But, if we continue to export, we miss a far greater opportunity in industries, jobs and innovations that will eventually be created through domestic development that allow value chains to be created,' he said. 'Sarawak holds 60 per cent of Malaysia's total natural gas reserves and operates the cleanest electricity grid in the region at just 0.19 kg CO2 per kWh, primarily from hydroelectric power,' he said. 'Sarawak has all the inherent ingredients to unlock the low-carbon economy in this region. It is not just resource-rich, it is development-ready,' he added. He said the Sarawak Gas Roadmap, launched in 2021, is a 10-year strategic plan by the Sarawak Government led by Petros and centres on four development hubs across the State. 'In Miri, the first onshore gas drilling project in over 30 years is underway and a new 500-megawatt power plant is expected to be commissioned by 2027. 'Samalaju will benefit from a 65km pipeline from Bintulu due for completion by year-end, while Bintulu's petrochemical hub has already begun operations with a methanol plant,' he said. Additionally, he said Petros is planning a low-carbon industrial hub through a three-wave approach. 'Currently, Kuching lacks pipeline gas infrastructure, relying instead on diesel and imported LPG. 'Can you imagine, in the capital of an energy-rich State, Kuching has no pipeline gas. 'Without action now, Kuching may not be able to shape the low-carbon economy in Sarawak and beyond,' he said. He said the Kuching project would begin with LNG-to-power infrastructure followed by industrial park development and culminate in high-value manufacturing including low-carbon hydrogen for steel production and ammonia for fertilisers. He pointed out that Petros has secured two anchor partners – China Jiangsu International and Sumitomo Corporation – selected from over 300 candidates. 'These two anchor partners have vast experience in developing industrial parks, not only domestically but internationally. Together, we are not building a facility, we are building an ecosystem.' He said the economic impact is substantial, pointing out that at full scale, the Sarawak Gas Roadmap is expected to deliver RM300 billion in investment, generate RM120 billion in annual output, comparable to the projected Johor-Singapore Special Economic Zone and create 180,000 jobs. 'This is about leverage, turning our resources into hydrogen, methanol and ammonia, into high-value manufacturing that produces advanced materials and low-carbon products. 'In doing so, we keep the economic value of energy circulating within our own economy, not just extracting, but multiplying,' he said. He pointed out that Petros, which was established in 2017, is now Malaysia's third-largest oil producer after Petronas and Shell and has already invested RM15 billion in the roadmap across various projects. 'Sarawak is not speculating. We are executing. We have the ingredients, the roadmap and momentum. Our strategy is about moving from volume to value and from resource to resilience,' 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
07-06-2025
- Business
- Borneo Post
DPM Fadillah: Petronas job cuts unrelated to Petros appointment as sole gas aggregator
Fadillah (second right) interacting with guests while presenting a gift of 'daging korban' (sacrificial meat) during the Majlis Ibadah Korban at Masjid Darul Husni Warrahmah in Kuching. – Photo by Chimon Upon KUCHING (June 7): Petroliam Nasional Berhad's (Petronas) decision to cut over 5,000 jobs, along with a freeze on all promotions and recruitment until December 2026, is unrelated to the recent recognition of Petroleum Sarawak Berhad (Petros) as Sarawak's sole gas aggregator. Deputy Prime Minister Datuk Seri Fadillah Yusof clarified this when met by reporters at the Majlis Ibadah Korban held at Masjid Darul Husni Warrahmah here today. 'No, it has nothing to do with that. It is actually due to the global situation, particularly the decline and fluctuation in oil prices,' he said. Petronas had earlier stated that its internal budgeting was based on Brent crude prices averaging between US$75 and US$80 per barrel. However, the global benchmark has since fallen and is currently hovering around US$65 per barrel. 'Even for Petronas to remain sustainable, oil prices must be above US$60 per barrel. That is why they have to re-evaluate their position,' Fadillah added. MORE TO COME fadillah yusof gas aggregator job cuts Petronas Petros
Borneo Post
28-05-2025
- Business
- Borneo Post
Sarawak bids to lead Asia in carbon storage with RM100 mln Petros initiative, says Deputy Premier
Awang Tengah says the initiative aims to build a globally competitive carbon storage portfolio, enhancing Sarawak's expertise, investment appeal, and progress towards a low-carbon, sustainable economy. – Photo by Sarawak Public Communications Unit KUCHING (May 28): Petroleum Sarawak Berhad (Petros) together with its investors has committed more than RM100 million to evaluate Sarawak's carbon storage potential and develop a comprehensive database, said Deputy Premier Datuk Amar Awang Tengah Ali Hasan. He said the initiative aims to build a globally competitive carbon storage portfolio, enhancing Sarawak's expertise, investment appeal, and progress towards a low-carbon, sustainable economy. 'Petros, as the appointed resource manager, has launched the Sarawak Bid Round 2024 – Asia's first carbon storage-focused bid round – offering three offshore storage sites with significant geological potential. 'Petros is currently finalising the agreement and plans to award the successful bidders by end of Q2 2025,' he said during his ministerial winding-up speech here today. Awang Tengah added that Petros is positioning Kuching and Samalaju as key hubs for Carbon Capture, Utilisation and Storage (CCUS), supported by the development of advanced infrastructure to establish integrated carbon storage systems within the next decade. 'This initiative will enable Sarawak to provide carbon storage solutions for both domestic and international emitters, opening up new opportunities in the CCUS industry,' he said. He noted that Sarawak is poised to lead regional CCUS efforts, with the state holding more than 65 per cent of Malaysia's geological carbon storage potential. 'Sarawak is at the forefront of national and regional decarbonisation initiatives, driving sustainable solutions and reinforcing its key role in the global low-carbon economy,' he added. Awang Tengah carbon storage DUN Petros
Borneo Post
17-05-2025
- Business
- Borneo Post
Sarawak govt extends free gas pipelines to 500 homes in Miri
Sumbang (centre) shows Lee (right) the working gas pipeline in his kitchen while Toh looks on. MIRI (May 17): The Sarawak government is extending free natural gas pipelines to approximately 500 homes in Taman Ceria, Permyjaya, as part of an initiative to ease the financial burden on low-income households, said State Transport Minister Dato Sri Lee Kim Shin. Implemented through Petroleum Sarawak Berhad (Petros), he said the project is a key component of the state's efforts to enhance basic amenities for residents, particularly in high-demand areas. 'In this constituency alone, many households rely on gas cylinders, often purchasing one or two monthly at a cost of RM30 to RM60. This initiative helps them save significantly,' he said when met during a working visit to some homes already equipped with the gas pipelines on Friday. Lee was accompanied by Councillor Toh Kah Siong. The Senadin assemblyman added that approximately 2,000 residents in the area are expected to benefit from the free natural gas installation under the Gabungan Parti Sarawak (GPS) Corporate Social Responsibility (CSR) programme. 'The installation cost for each home typically averages RM3,500, but under this initiative, it is fully subsidised for low-cost housing units. 'With natural gas, residents could pay as little as RM5 per month – far less than cylinder gas. Even at RM10, the savings are still substantial,' he said. During the visit, Lee also met with eight families who had recently received gas connections and presented them with basic necessities as a gesture of support. One of the beneficiaries, Sumbang Ganja, 53, expressed his appreciation for the initiative. 'Previously, we had to buy gas cylinders that sometimes ran out before the month ended. Now, we pay only RM5 or RM6 – up to RM10 max – which is already a huge help,' he said. free gas pipelines Lee Kim Shin miri
Borneo Post
09-05-2025
- Business
- Borneo Post
Legal foundation key to Sarawak–federal talks on Petronas-Petros, says Deputy Premier
Dr Sim points out that the issue of oil and gas sovereignty involves what he described as 'Sarawak's big money for the next 100 years', and that the rule of law will determine Sarawak's position in this century-long strategic game. KUCHING (May 9): The ongoing negotiations between the Sarawak government, the federal government, Petronas, and Petroleum Sarawak Berhad (Petros) hinge critically on establishing a solid legal foundation, said Deputy Premier Datuk Amar Dr Sim Kui Hian. He pointed out that the issue of oil and gas sovereignty involves what he described as 'Sarawak's big money for the next 100 years', and that the rule of law will determine Sarawak's position in this century-long strategic game. 'This year, the Sarawak government's revenue is RM15.8 billion – equivalent to 15 years of Penang's income or five years of Selangor's. That's the gap,' he said, in a See Hua Daily News report. He candidly remarked that the agreement currently being negotiated with the Prime Minister Datuk Seri Anwar Ibrahim, even if only at a preliminary stage, could already bring Sarawak RM10 billion in cash – an amount that surpasses the total property value of Kuching, Sibu and Miri combined. He said this was merely 'the initial funding', noting that the real value lies in Sarawak's rich and strategically important natural gas reserves. 'We are the fifth or sixth largest natural gas reserve in the world. This money is not just for now — it is money with far-reaching implications for the next hundred years,' he said when officiating at the Borneo Eco Show 2025 at the Borneo Convention Centre Kuching (BCCK) today. Touching on medical research, Dr Sim highlighted that since the establishment of Clinical Research Malaysia in 2012, Sarawak has successfully attracted over RM1.5 billion in medical research investments and created around 3,000 high-paying jobs. He emphasised that Sarawak now leads the nation in First-in-Human (FIH) clinical trials. In 2023, Malaysia recorded six such trials – five of which were from Sarawak. Notably, the Sarawak General Hospital (SGH) has been recognised by international pharmaceutical giant Roche as the only medical institution in Southeast Asia qualified to conduct cancer clinical trials. Dr Sim also cited Singapore as an example of what not to blindly follow in urban development. He shared that during a visit with Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg to Singapore's Ang Mo Kio area in 2022, they learned that the Singapore government had removed a previously cemented river and restored it to its natural state, as the concrete structure had caused fish and birds to vanish. 'Our drains aren't cemented, not because we're advanced, but because we couldn't afford it. But in the end, we preserved the natural rivers, which turned out to be an advantage,' said Dr Sim. He stressed that urbanisation should balance sustainability with livability, and mistakes made by others need not be repeated. With a touch of wit, he added: 'If others have already gotten cut by the knife, we don't need to slash ourselves again.' Dr Sim Kui Hian oil and gas Petronas Petros
