Petros will not displace or undermine Petronas, says Abang Johari

 The Sarawak premier says the state government will continue to cooperate with Petronas as it increases its capacity to process Sarawak’s resources.

Sarawak premier Abang Johari Openg said Petros had been in discussions for more than a year with Norwegian energy infrastructure company Höegh Evi to develop, own and operate the Kuching LNG terminal.

PETALING JAYA:

Sarawak premier Abang Johari Openg has given an undetaking that the growing role of the state oil company Petros in Sarawak’s gas sector is not aimed at displacing Petronas.

He said the state government remains committed to working with Petronas, even as it increases its capacity to process Sarawak’s resources and develops the state’s first liquefied natural gas (LNG) regasification facility by 2029.

“Many people say I want to kill Petronas, or that Petros will undermine Petronas. That is simply not true. We share opportunities with Petronas,” he was quoted by Dayak Daily as saying in Mukah today.

He said Petros had been in discussions for over a year with Norwegian energy infrastructure company Höegh Evi. The two companies announced a joint development agreement on Thursday to develop, own and operate the Kuching LNG terminal.

Abang Johari said Sarawak was also looking at establishing small-scale LNG plants using feedstock available in the state, with regasification allowing LNG to be converted back into gas for downstream activities.

Processing gas locally would allow Sarawak to pursue higher-value products and reduce its reliance on fluctuating gas prices. He said Sarawak was also pursuing carbon capture, utilisation and storage off the Mukah-Balingian area as part of its broader energy strategy. - FMT