KUCHING: A consortium of three companies has signed a Memorandum of Understanding (MoU) to explore developing a condensate refinery in Sarawak, a key step to advancing the state’s downstream oil and gas industry.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg witnessed the MoU signing between Senari Synergy Sdn Bhd, Tulen Energy Sdn Bhd and Ocean Vantage Engineering Sdn Bhd
The exchange of documents took place during the Energy Industries Council (EIC) Connect Energy Borneo event at the Hikmah Exchange Convention Centre Kuching here on Tuesday (Feb 25).
According to a press release, the proposed refinery will process locally produced condensate, a byproduct of Sarawak’s thriving natural gas industry, into high-value refined products such as naphtha, jet fuel, diesel and liquefied petroleum gas (LPG).
The initiative aligns with Sarawak’s long-term vision to strengthen its position as a regional energy hub and drive industrial growth through strategic downstream investments.
The establishment of a condensate refinery is expected to bring significant benefits to Sarawak, including economic growth and industrial development, job creation and skills development, and export potential and global market expansion.
The refinery will also help reduce reliance on imported refined fuels, ensuring a more stable and secure fuel supply for Sarawak and Malaysia.
In addition, the refinery will be integrated with existing infrastructure, leveraging Bintulu’s well-established oil and gas facilities, including the Bintulu Crude Oil Terminal (BCOT) and deepwater port, which will enhance logistics efficiency and competitiveness.
By working together, the consortium aims to maximise the value of Sarawak’s natural resources through in-country refining, establish a strong presence in the downstream oil and gas industry, creating long-term revenue streams, and develop a sustainable and competitive refinery model, leveraging technological advancements and industry best practices.
The consortium is also committed to environmentally responsible operations, ensuring the refinery meets the highest standards in efficiency, emissions control and sustainability.
This initiative aligns with Malaysia’s energy transition goals, promoting cleaner fuel alternatives and responsible resource management.
Following the MoU signing, the consortium will conduct detailed feasibility studies, site selection assessments, and stakeholder consultations to evaluate the refinery’s commercial viability.
Engagements with government authorities and industry partners will also be pursued to ensure regulatory compliance and alignment with Sarawak’s economic policies.
The MoU was one of the seven MoU exchanges, highlighting robust strategic collaboration and significant support within the energy sector in Sarawak and beyond.
