SARAWAK ENERGY & PETRONAS SIGN KEY TERM SHEET FOR LONG TERM ELECTRICITY SUPPLY
KUCHING 4th March 2021 – PETRONAS, as one of the world’s largest exporter of Liquefied Natural Gas (LNG) through its subsidiary, Malaysia LNG Sdn Bhd (MLNG), today signed a key term sheet with Syarikat SESCO Berhad (SESCO), a subsidiary of Sarawak Energy, for electricity supply to its PETRONAS LNG Complex (PLC) in Bintulu.
Under the key term sheet, SESCO is committing to provide 90 megawatts (MW) of electricity supply at 275kV to the PETRONAS LNG Complex in Tanjung Kidurong, Bintulu from March 2024 for a term of 20 years.
This will bolster clean energy consumption and decarbonise operations of the complex, in tandem with PETRONAS’ aspiration of Net Zero Carbon Emissions by 2050.
Sarawak Energy’s electricity supply is predominantly renewable following Sarawak’s transition to renewable energy resources under the Sarawak Corridor of Renewable Energy or SCORE strategic initiative. Sarawak has recorded a reduction in carbon intensity for power generation by 68% from 2011 to 2019.
Sarawak Chief Minister Datuk Patinggi (Dr.) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg witnessed the virtual signing ceremony between both leading energy companies. Joining the Sarawak Chief Minister were Sarawak Minister for Utilities, Dato Sri Dr. Stephen Rundi Utom and Dato Haji Ibrahim bin Haji Baki, Member of Risk Committee and Independent Non-Executive Director, PETRONAS.
The ceremony was also witnessed by Tengku Muhammad Taufik, President & Group Chief Executive Officer, PETRONAS, and Datuk Amar Abdul Hamed Sepawi, Chairman, Sarawak Energy.
Signing on behalf of Malaysia LNG Sdn Bhd was its Managing Director and Chief Executive Officer Mohamed Syazwan Abdullah @ Laga Jenggi and Datu Haji Sharbini Suhaili, Group Chief Executive Officer, Sarawak Energy signed on behalf of SESCO.
In his congratulatory remarks during the event, the Sarawak Chief Minister said that the term sheet reaffirms Sarawak’s position as an ideal sustainability-driven investment destination.
“As a result of farsighted and long-term strategic planning, Sarawak has clear competitive differentiators and value propositions that we offer to prospective investors by providing competitively-priced renewable and reliable power, connectivity infrastructure, investment infrastructure, friendly business policies and a competent and trainable workforce. I am happy to note that Sarawak continues to be among the top five investment destination in the country recording an approved investment worth RM19.6 billion last year.”
Sarawak’s Chief Minister added that the Sarawak Government is embarking on green technology through extension of hydrogen power besides hydropower and the combination of both strategic power source would enable Sarawak to play its role in the global shift amidst the issues of global warming, in line with the objectives of the Paris Accord as a platform for world economic growth powered by environmentally friendly energy.
“Sarawak, with its abundant sources of renewable power as well as its desire to use technology as an enabler, will usher change in its development strategy towards a developed entity by 2030, and all economic sectors will be driven by green technology – this include reafforestation, agriculture and manufacturing. The blueprint will be made public soon after the final draft of our post-Covid-19 economic exit strategy,” he said.
Earlier, Abdul Hamed said Sarawak Energy was pleased to work with likeminded organisations that believe all parties have a role to play in mitigating climate change through responsible action.
“Allow me to congratulate PETRONAS on their aspiration to achieve Net Zero Carbon Emissions by 2050. We look forward to working with you to advance this ambition through this term sheet and other collaborations to contribute to the creation of a sustainable energy future,” Abdul Hamed added.
In his speech, Tengku Muhammad Taufik said, “The partnership today signifies PETRONAS’ commitment towards ensuring accessibility of cleaner energy sources as we navigate through the global energy transition. The power import deal with Sarawak Energy represents a necessary and elegant solution as this partnership enables us to increase the sustainability of our operations at PLC and reduce our Green House Gas (GHG) emissions, bringing us closer towards our Net Zero Carbon Emissions by 2050 aspiration.”
Sarawak Energy is Malaysia’s largest renewable energy provider, harnessing its abundant natural resources to light up Sarawak and provide power for its growth. These resources have enabled the power utility to offer reliable and competitively priced electricity to its domestic, commercial, industrial and export customers with MLNG now coming onboard as a future bulk power customer.
MLNG operates the PETRONAS LNG Complex in Bintulu, Sarawak, which is one of the world’s largest LNG complexes operating on a single site. The nine-train facility has a combined annual LNG production capacity of approximately 30 million tonnes. PETRONAS, with over 40 years of experience in the integrated global LNG business, has a sterling reputation as a reliable LNG solutions provider and supplier, with a growing record of over 11,500 LNG cargoes safely delivered.