KUALA LUMPUR: Petronas Chemicals Group Bhd (PCG) signed a memorandum of understanding (MoU) with Sarawak Petchem Sdn Bhd (SPSB) 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 SPSB managing director and chief executive officer Datuk Mohammad Ibrahim and head of finance and commercial Abdul Razak Ali.
PCG was represented by its managing director and chief executive officer Mazuin Ismail and the head of strategic
planning and ventures Ir Yaacob Salim.
The event was witnessed by the Premier of Sarawak, Datuk Patinggi Tan Sri (Dr) Abang Abdul Rahman Zohari Tun Datuk Abang Openg, together with SPSB chairman Tan Sri Datuk Amar (Dr) Abdul Aziz Datuk Husain, Petroliam Nasional Bhd (Petronas) chairman Tan Sri Mohd Bakke Salleh and Petronas president and group chief executive officer 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 be capable of producing ammonia with a very low carbon footprint. It is indeed a strategic initiative to capitalise on opportunities within the global energy transition market,” said Abang Abdul Rahman Zohari.
Abdul Aziz said this collaboration allows SPSB 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),” he said.
Mazuin welcomed this opportunity to work with SPSB, further strengthening PCG’s working relationship with the Sarawak state.
“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 SPSB aligns with PCG’s and the nation’s sustainability objectives and 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,” he said.
