KUCHING: The state government and Petroliam Nasional Bhd (Petronas) will formulate a petrochemical masterplan that will enhance the state's and country's petrochemical industry soon.
The commitment between both parties to conduct a joint study for the Sarawak Petrochemical Master plan was inked during the signing of a Memorandum of Understanding (MoU) today.
The signing of the MoU was witnessed by Prime Minister Datuk Seri Najib Razak and Sarawak Chief Minister Tan Sri Adenan Satem.
The MoU was signed by State Secretary Tan Sri Morshidi Abdul Ghani on behalf of the Sarawak government, and Petronas corporate strategy senior vice-president Adif Zulkifli.
Under the MoU, the state government and Petronas will undertake the technical, commercial and economic feasibility study for joint petrochemical development in Sarawak.
At the same ceremony, both parties had also signed a Principle Agreement for the supply of 450 million standard cubic feet per day (mmscfd) of natural gas for the power and non-power sectors in the state.
Under the agreement, Petronas will supply 250 mmscfd of natural gas to Sarawak Energy Bhd (SEB) for the latter's existing power plant at Tanjung Kidurong as well as a new 1,200MW power plant in Samalaju Industrial Park both in Bintulu.
Petronas will also supply the remaining 200 mmscf of natural gas to Sarawak as feedstock for the petrochemical industry.
Petronas also inked a Gas Sale Agreement with SEB to supply 100 mmscfd natural gas to the Tanjung Kidurong power plant.