Petronas kicks off gas delivery facility development

State-owned Petronas said it has kicked off the development of a gas delivery facility at Tanjung Kidurong, Bintulu, that will, from next year, supply natural gas to Sarawak Petchem (SPSB) and Sarawak Energy (SEB).

The ground-breaking ceremony for the Bintulu additional gas sales facility (BAGSF-2) took place on August 22. BAGSF-2 is designed with a capacity to deliver up to 390mn ft3/day of gas. The facility will deliver 160mn ft3/day of natural gas to a Sarawak government-owned methanol plant, which will be operated by SPSB. The methanol plant is currently under construction at Tanjung Kidurong.

Another 70mn ft3/day will be supplied to SEB’s Tanjung Kidurong power plant. The remaining capacity will allow the facility to supply future customers, Petronas said.

Petronas in 2016 signed an agreement with Sarawak government to supply a total of 450mn ft3/day of natural gas to Sarawak for power generation and state-owned petrochemical industries. In 2021, Petronas signed another memorandum of understanding to increase gas supply to 1,200mn ft3/day to Sarawak.