PETRONAS Signs Agreement to Supply Natural Gas to Sarawak Energy

Sarawak Energy Berhad signed Sunday a new 20-year Gas Sales Agreement (GSA) with Petroliam Nasional Berhad (PETRONAS) for the supply of 100 million standard cubic feet per day (MMscf/d) of natural gas to its gas-powered plant in Bintulu, Sarawak, Malaysia.

The new GSA is part of the overall commitment from PETRONAS to supply Sarawak Energy with 250 MMscf/d of natural gas for Sarawak’s power sector.

The remaining 150 MMscf/d will be supplied to Sarawak Energy’s new Combined-Cycle Gas Turbines (CCGT) power plant to be constructed at Samalaju, and will be subject to a separate GSA.

The signing ceremony was witnessed by Prime Minister Najib Razak and Chief Minister Adenan Satem. Also present were the Minister for Public Utilities, Amar Awang Tengah Ali Hasan and other dignitaries.

The agreement was signed by Group CEO, Torstein Dale Sjotveit and member of the Board of Director Fong Joo Chung for Sarawak Energy. Signing for PETRONAS was its Executive Vice President and CEO (Upstream) Mohd Anuar Taib.

Sarawak Energy is developing gas-powered generation projects over the next 5 to 10 years with a plan to expand gas power generation capacity by an additional 1,600 megawatts (MW).
    
“We are undertaking a two-phase plan to raise output and strengthen our gas generation mix; phase one will be the development of the 400 MW CCGT Block at Tanjung Kidurong which we will build within the existing Tanjung Kidurong (Bintulu) Power Station and phase two will see us develop a new 1,200MW gas-power plant at Samalaju Industrial Park,” explained Torstein.

The existing Open-Cycle turbines at Tanjung Kidurong Power Station will be phased out as the new combined cycle gas turbines are installed, for better efficiency through CCGT’s advanced gas turbine technology.

Currently, about 15 percent of Sarawak’s power generation is from its Bintulu and Miri gas-powered plants and 10 percent from coal resources. About 75 percent of Sarawak’s current power is derived from the hydropower plants at Murum, Bakun and Batang Ai HEP’s.

Sarawak Energy’s ideal generation mix is at 60 percent hydro, 20 percent coal and 20 percent gas from Sarawak’s various indigenous energy sources.

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