PETRONAS Chemicals Group Berhad (PCG) has signed a Memorandum of Understanding (MoU) with Sarawak Petchem Sdn. Bhd. (Sarawak Petchem) to conduct a joint feasibility study to develop a low-carbon ammonia and urea plant in Bintulu, Sarawak.
Under the terms of the MoU, the two companies will conduct a joint comprehensive study on the technical and commercial aspects, among other considerations, in meeting the rising demands for cleaner energy solutions by tapping into the renewable energy potential within the region.
The MoU was signed by Sarawak Petchem’s Managing Director / Chief Executive Officer (MD/CEO) YBhg. Dato’ Mohammad Haji Ibrahim and Head of Finance & Commercial Abdul Razak Ali, while PCG was represented by its MD/CEO Mazuin Ismail and Head of Strategic Planning & Ventures, Ir. Yaacob Salim. The event was witnessed by the The Right Honorable Premier of Sarawak, Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari Tun Datuk Abang Haji Openg; Sarawak Petchem Chairman, YBhg. Tan Sri Datuk Amar (Dr) Haji Abdul Aziz bin Dato Haji Husain; PETRONAS Chairman, YBhg. Tan Sri Dato’ Seri Mohd Bakke Salleh; as well as the PETRONAS President and Group CEO Tan Sri Tengku Muhammad Taufik.
“The collaboration to jointly study the potential development of a world-scale Low-Carbon Ammonia and Urea plant is very much welcomed. This plant will have a future capability to produce ammonia with a very low carbon footprint; it is indeed a strategic initiative to capitalise on opportunities within the global energy transition market,” said The Right Honourable Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari.
YBhg. Tan Sri Datuk Amar (Dr) Haji Abdul Aziz further added, “This collaboration allows us to capitalise on synergies, optimise costs, and share the risks, thereby maximising value for Sarawak and Malaysia. This further exemplifies our prudent business practices and collaborative mindset. This joint development initiative serves as a catalyst for economic development in Sarawak, driving job creation and fostering sustainable growth in line with the objectives outlined in the Sarawak Post COVID-19 Development Strategy 2030 (PCDS 2030).”
“We welcome this opportunity to work with Sarawak Petchem, as it will further strengthen our working relationship with the State of Sarawak. This is potentially PCG’s first low-carbon project and underlines our commitment to drive the sustainable transformation within our value chain. This collaboration with Sarawak Petchem not only aligns with PCG’s and the nation’s sustainability objectives, but also facilitates our further expansion into the Southeast Asian urea market. Additionally, it presents an opportunity to leverage Sarawak’s renewable energy resources while complementing our efforts in developing Carbon Capture and Storage (CCS) facilities,” said Mazuin.
Low-Carbon Ammonia is predominantly utilised in the hydrogen and power sectors for cofiring, bunkering and future sustainable Ammonia applications while Urea serves primarily as a fertiliser, a raw material for resins in plywood and adhesives, as well as diesel exhaust fluid for automotive applications.
