Petronas inks agreement with Sarawak Energy to purchase power supply

KUCHING: Sarawak Energy Bhd today inked a power purchase agreement term sheet with Petroliam Nasional Berhad (Petronas) to provide 90 megawatt (MW) of power supply to the Malaysia LNG complex in Tanjung Kidurong, Bintulu for a term of 20 years.

The agreement was signed by Malaysia LNG Group of Companies and Petronas LNG Bhd managing director and chief executive officer (CEO), Mohamed Syazwan Abdullah on behalf of Petronas, and Sarawak Energy Group CEO Datuk Sharbini Suhaili.

Sarawak Chief Minister Datuk Patinggi Abang Johari Tun Openg who witnessed the proposed deal said the event marked a key milestone in the relationship between Sarawak Energy and Petronas.

He said the agreement allowed Sarawak to continue to share its renewable energy resources with other energy players in developing a sustainable energy future.

"The commitment to provide 90MW of power supply to the Malaysia LNG complex in Tanjung Kidurong, for a term of 20 years indicates confidence in not just Sarawak Energy’s ability to provide power but also attests Petronas' confidence in their long-term presence in Sarawak," he said.

Abang Johari said the Commercial Settlement Agreement (CSA) between Petronas and Sarawak signed on Dec 7 last year should also be an indication of a partnership between both parties in the development of both the upstream and downstream of the oil and gas resources in Sarawak for their common benefits.

"The agreement today also builds upon the Memorandum of Understanding signed (on Nov 10) last year between the two parties (Petronas and Sarawak Energy) to jointly explore the commercial production of green hydrogen to progress a green hydrogen economy for Sarawak and beyond.

"The Term Sheet agreement signed today reaffirms Sarawak’s position as an ideal sustainability-driven investment destination," he said .

He said Sarawak continued to become among the top five investment destinations in the country by recording investments worth RM19.6 billion last year and that the state government would ensure that all developments to create a high-income economy in the state would be undertaken responsibly and sustainably.

"We want to strike a balance between socio-economic development and environmental wellbeing. This is demonstrated by our decision to focus on renewable hydropower development as one of the enablers to attain a high-income status by 2030 through the Sarawak Corridor of Renewable Energy in 2009,” he added. - Bernama

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