Sat. May 18th, 2024

SEDC, Petronas, Shell, PTTEP sign HOA to advance downstream ambitions

Leading operators in Malaysia are forging ahead with plans for the Sarawak Integrated Sour Gas Evacuation System (SISGES) project, which is expected to be the catalyst for further development of untapped sour gas resources off the coast of Sarawak.

The offshore area hosts trillions of cubic feet of unexploited gas resources but many have high carbon dioxide and/or hydrogen sulphate contents that will require technologies and solutions — such as carbon capture and storage — if these are not going to be left sub-surface.

Produced gas would likely be used as feedstock at the Petronas LNG Complex at Bintulu or by local industry.

PTTEP’s Lang Lebah giant gas field development will be one of the key projects for SISGES, which Malaysia’s national energy giant Petronas has said will be a catalyst for the monetisation of high contaminant fields in the state of Sarawak.

Lang Lebah and the Shell-operated Rosmari-Marjoram fields have recorded hydrogen sulphide contaminants of a few thousand parts per million, while Petronas Carigali’s Kasawari gas contains between 30% and 40% CO2.

Another sour gas field waiting in the wings offshore Malaysia is SapuraOMV’s B14.

The Sarawak State Government, via the Sarawak Economic Development Corporation (SEDC) on Thursday entered into a Heads of Agreement with Petronas, Shell and PTTEP for a long-term lease of land within the Petchem Industrial Park in Tanjung Kidurong, Bintulu, Sarawak. Both the land and Petchem Industrial Park belong to SEDC.

The earmarked land will be leased to build an onshore plant complex which forms part of the SISGES project.

The development plan for the SISGES project is currently undergoing its final review process prior to the final investment decision by investors and the necessary statutory approvals.

Petronas described the HoA as a “major milestone” that signifies the commitment from the Sarawak State Government agencies in collaborating with it to create and maintain a stable, conducive business and investment environment for the sustainable growth of the oil and gas industry in Sarawak.

The creation of the Petchem Industrial Park by SEDC two years ago was to encourage active participation from domestic and international investors to intensify Sarawak’s downstream oil and gas activities, which is in line with the state government’s aspiration towards becoming a developed state by 2030.

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