– extracted and adapted from RAKAN Sarawak October – December 2021 –
As part of its industrialisation agenda that is in line with its aspiration to become a developed state by 2030, Sarawak will prioritise efforts to make high-value petrochemical industry one of its major drivers in growing its manufacturing sector.
Specifically, it will focus on downstream development of its liquefied natural gas (LNG), in which it has been exported as feedstock rather than utilised for value-added activities locally.
“We want Bintulu to be the petrochemical hub in Sarawak through the establishment of (Sarawak Petrochemical Hub) to realise this objective of placing our downstream petrochemical activities here,” said Premier Sarawak, YAB Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg.
The Premier Sarawak noted the methanol plant project as one of the initiatives by the Sarawak Government that will be a catalyst to add more value to the local petrochemical industry through downstream activities, and further transform Bintulu from from a world-renowned LNG producer to a petrochemical hub.
“This will add multiple values to our natural resources which will benefit the state economically derived through its value chains,” he added.
Additionally, Sarawak Petchem Methanol Plant is expected to generate employment opportunities, with up to 4,500 workers during the construction of the project and around 300 staff during the operation of the plant.
Many of these staff, including engineers, technicians, operators, and specialists, are required to be highly skilled, given the plant’s state-of-the-art and high technology.
Therefore, it is anticipated that the project will attract local talents and encourage technology transfer from petrochemical experts.
Established in June 2017, the state-owned Sarawak Petchem Sdn Bhd will be the first company in Sarawak that produces methanol, with an annual capacity of 1.7 million metric tonnes per annum.
As a key agency in advancing Sarawak’s petrochemical industry, it has thus far commenced the Technician Training Programme in collaboration with Institut Teknologi Petroleum PETRONAS (INSTEP).
At the time of writing, the first batch comprising 74 trainees are undergoing the one-year programme at the technology institute, while the second batch consisting of 42 trainees are expected to begin theirs in November 2021.
All of these trainees are Sarawakians and are mostly fresh Technical Diploma holders; 80 per cent of whom are from the low-income or B40 group from across the State.
“This is one of the efforts and contribution by Sarawak Petchem towards uplifting the standard of living of Sarawak people especially from rural areas,” said Premier.
Sarawak Petrochemical Hub
Sarawak Petchem Methanol Plant is in adjacent to the Sarawak Petrochemical Hub in Tanjung Kidurong, Bintulu.
Once fully operational, the hub is anticipated to create 74,000 jobs for Sarawakians and potentially contribute an additional RM16 billion to RM20 billion a year to Sarawak’s gross domestic product (GDP).
Apart from adding more value in its oil and gas and creating job opportunities for highly skilled locals, the petrochemical hub is expected to lay the foundation for other forms of economic activities such as services and maintenance.
It will be developed on a 1,068-acre land in Tanjung Kidurong acquired by the Sarawak Government and will be managed by Sarawak Economic Development Corporation, which will provide basic facilities and utilities required to enable the set-up of any petrochemical plant. The land is located 15 kilometres north-east of Bintulu town and 36 kilometres from Samalaju Industrial Park. It is also surrounded by energy-intensive developments such as Petronas LNG Complex and Shell MDS.
