KUCHING: Sarawak’s northern region is set for an economic boost with the development of a proposed integrated oil and gas complex in Lawas by Chinese investors.
Beijing Beca Sci-Tech Co Ltd and Sinopec Engineering Incorporation signed a memorandum of understanding (MOU) with the state government on the US$5bil (RM20.8bil) project yesterday.
“This will be a game changer for northern Sarawak, particularly Lawas and Limbang.
“When it becomes a reality, this investment will spread out the development in Sarawak to the northern part,” said Chief Minister Datuk Patinggi Abang Johari Tun Openg after witnessing the signing of the MoU.
The proposed project will produce petrochemical products for industrial customers in China and South-East Asia. Production is targeted to begin in 2022.
Abang Johari said the Chinese investors chose Lawas because of its strategic location, availability of land and environmental stability.
He said the state government would assist them by providing supporting facilities, including the development of a port at the project site in Pulau Sari.
In his speech earlier, Abang Johari said the MoU signing was a positive step towards expanding Sarawak’s capacity in the oil and gas sector.
He said this was in tandem with the state’s oil and gas policy, aimed at empowering Sarawak to take an active part in developing its oil and gas resources.
“We want to participate in the exploration and extraction of oil and gas in Sarawak and engage in upstream and downstream activities, primarily to enable Sarawak to have a new revenue stream.
“We welcome the active participation of the private sector in the development of the state’s oil and gas sector,” he said.
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