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Bintulu Additional Gas Facility-2 begins delivery to methanol plant

0 month ago, 18-Sep-2023

Firouz (third left) presents a memento to Abang Johari. From left are Sikie, Awang Tengah, Dr Rundi, and Abdul Aziz. Ukas photo

KUCHING (Sept 18): The Bintulu Additional Gas Facility-2 (BAGSF-2) commences delivery of gas to a new methanol plant in Bintulu today, supporting the further growth of the petrochemical industry in Sarawak.

The initial supply of gas from BAGSF-2 via a newly-built pipeline provides fuel for the commissioning of the world-scale Sarawak Petchem Sdn Bhd (SPSB) methanol plant.

Malaysia Petroleum Management senior vice president Mohamed Firouz Asnan, who represented Petronas, said with the design capacity of 390 million standard cubic feet of gas per day (MMscfd), the BAGSF-2 facility, which takes gas from Slug Catcher 1 in the Malaysia Liquefied Natural Gas (MLNG) area, will supply 160 MMscfd to Sarawaks first mega-methanol plant plus 70 MMscfd for the power plant operated by Sarawak Energy Berhad.

The remaining capacity is allocated for other projects earmarked in Bintulu under the Sarawak Gas Roadmap, he said at the BAGSF-2 First Gas Readiness Ceremony, which was launched by Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg in Bintulu today.

He said the readiness of BAGSF-2 facility marked a new chapter in the development of the oil and gas sector in Sarawak.

It is our hope that the delivery of additional gas will power the further growth of the downstream sector in the state, he said.

He also said Petronas is honoured to be part of this pursuit to add value to the hydrocarbon resources found off the coast of Sarawak.

This project is a further testament of our commitment to support the aspiration of the state for greater downstream development.

This is grounded in our amanah (trust) to responsibly develop the hydrocarbon resources in Malaysia for the benefit of her people, he said.

In 2016, Petronas signed an agreement with the Sarawak government to supply a total of 450MMscfd of natural gas to Sarawak for power generation and state-owned petrochemical industries, which led to the construction of BAGSF-2 undertaken by Petronas Carigali Sdn Bhd.

Five years later, Petronas signed another memorandum of understanding (MoU) to increase gas supply to 1,200 billion standard cubic feet of gas per day to Sarawak.

On a related matter, Firouz said Petronas together with its Petroleum Arrangement Contractors, in meeting the growing demand by its downstream customers in Sarawak, continue to invest in developing new offshore production facilities as well as pipelines and onshore facilities to connect the supply to the customers.

Last month, just before Hari Merdeka we brought onstream new gas supply from Timi field, operated by Sarawak Shell.

What makes us even prouder was the fact that Timi facilities were fabricated by Brooke Dockyard & Engineering Works in Kuching, he said.

He also said that the Jerun and Kasawari Ph 1 developments are currently in progress and scheduled for first gas next year.

Other projects in the pipeline includes Rosmari & Majoram, which was sanctioned late last year while we continue to progress the studies on the giant Lang Lebah project, targeted for sanctioning in the first quarter of next year, he added.

In keeping pace with new gas demand in the Bintulu area, Firouz said Petronas had commissioned Petronas Carigali, the operator of Bintulu Integrated Facility (BIF), to embark on the expansion of the Bintulu Onshore facilities.

Among those present were Deputy Premier Datuk Amar Awang Tengah Ali Hasan; Food Industry, Commodity and Regional Development Minister Dato Sri Dr Stephen Rundi Utom; Minister in the Premier of Sarawaks Department Datuk John Sikie Tayai; Deputy Minister of Energy and Environmental Sustainability Dr Hazland Abang Hipni; Sarawak Petchem chairman Tan Sri Datuk Amar Abdul Aziz Husain; and Satok assemblyman Dato Ibrahim Baki, who is also Petronas non-independent non-executive director.