PCG and Sarawak Petchem collaborate on low-carbon ammonia and urea plant in Bintulu

KUALA LUMPUR: Petronas Chemicals Group Bhd (PCG) has signed a memorandum of understanding (MoU) with Sarawak Petchem Sdn Bhd 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 collaboration to jointly study the potential development of a world-scale low-carbon ammonia and urea plant is very much welcomed. This plant will have a future capability to produce ammonia with a very low carbon footprint; it is indeed a strategic initiative to capitalise on opportunities within the global energy transition market,” Sarawak Premier Tan Sri Abang Johari Tun Openg said in a joint statement.

Meanwhile, PCG managing director/CEO Mazuin Ismail said this is potentially PCG’s first low-carbon project and underlines its commitment to drive the sustainable transformation within its value chain.

“This collaboration with Sarawak Petchem not only aligns with PCG’s and the nation’s sustainability objectives, but also 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,” said Mazuin.

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