Thursday, 12 March 2026

Gas wealth fuels economic transformation

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Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg

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Sarawak is poised to leverage its abundant natural gas resources as a major downstream industry, aiming to drive economic transformation over the next five years.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg stressed that the state is committed to developing its domestic gas industry for long-term growth.

He noted the recent milestone in Bintulu, where Sarawak Petchem’s methanol plant in Tanjung Kidurong facilitated the first shipment of methanol products to China, which exemplifies this ambition.

This, he said, marks the first step in Sarawak’s journey toward utilising more gas as feedstock to produce various products and generate power, aimed at invigorating the state’s economy.

“Every liquefied natural gas (LNG) cargo ship that leaves Bintulu without further domestic processing represents a lost opportunity for Sarawak to benefit from the development of the value chain of its gas downstream sector.

“We want our gas exported and used as feedstock for further downstream activities. Our domestic gas industry will provide high-paying jobs and generate the local economy.

“With this approach, I am confident that our gas resources can be a major downstream industry to transform our economy in the next five years and beyond with the ultimate aim of increasing Sarawak’s household income to be on par, if not surpassing the national average,” he said.

The Premier said this in his Chinese New Year message.

Building on this success, Sarawak is already laying the groundwork for further advancements.

On the same day as the methanol shipment, the Premier officiated the earth-breaking ceremony for a green methanol plant adjacent to the existing facility.

Abang Johari said that these developments reflect the government’s commitment to ensuring benefits from its natural resources. 

“With the completion of this first plant, we have proved that we can do it like other big companies.

“In this context, I would like to thank the federal government for agreeing to PETROS as the single Gas Aggregator,” he added.

The state’s determination extends beyond methanol production.

Abang Johari said that PETROS, Sarawak’s state-owned oil and gas company, spearheads the RM2 billion combined-cycle gas turbine project in Miri, generating 500 MW of power for industrial use and export.

This initiative, he said, exemplifies Sarawak’s strategic use of gas resources to meet domestic energy demands and support regional energy needs. 

On the same note, he said the Sarawak Gas Roadmap outlines a comprehensive plan to expand the industry further, including establishing a gas terminal at the proposed Tanjung Embang deep-sea port near Kuching.

While natural gas exports have been a mainstay for over four decades, the Premier expressed optimism that it is not too late to harness this resource for domestic growth through value-added products and services.

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