Sarawak Aims to Develop First LNG Regasification Facility by 2029

Sarawak is set to develop its first liquefied natural gas (LNG) regasification facility in Kuching by 2029, with Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg emphasizing the importance of cooperation between Petroleum Sarawak Berhad (Petros) and Petroliam Nasional Berhad (Petronas).

The Premier clarified that Petros' growing role in the State's gas sector is not aimed at displacing Petronas, with many saying he wants to 'kill Petronas' or undermine its operations.

Abang Johari stated that Sarawak shares opportunities between Petronas and itself, and that Petros has been discussing a collaboration with Norwegian energy infrastructure company Höegh Evi for over a year.

The partnership was formalized through a Joint Development Agreement (JDA) on October 1st, which will see the development of the Kuching LNG Terminal. This terminal is expected to deliver its first gas by the end of 2029 and will be part of the Kuching Low-Carbon Hub.

The Premier also highlighted that processing gas locally would allow Sarawak to pursue higher-value products while reducing reliance on fluctuating market prices. He added that revenue generated from the energy sector will be reinvested into downstream industries, including potential developments involving HighChem, Indorama and Sakura.