KUCHING: Sarawak is positioning itself as a hybrid petro-electro state to remain competitive in a low-carbon future, says Datuk Awang Tengah Ali Hasan.
The Sarawak Deputy Premier said the state is leveraging its strengths in natural gas, renewable energy and hydrogen to achieve this ambition.
"Sarawak holds more than 60% of Malaysia's natural gas reserves, possesses over 65% of the nation's carbon capture, utilisation and storage (CCUS) potential and is leading Malaysia's renewable energy transition through hydropower, with a target of achieving 10,000MW of renewable energy capacity by 2030," he said at PETRONAS' vendor commemoration ceremony here on Tuesday (July 21).
Awang Tengah said Sarawak is also expanding its regional connectivity through the Borneo and Asean power grid initiatives, along with electricity exports.
To realise Sarawak's ambitions, he called on local companies to enhance their technical competence and innovation capacity, embrace new technologies and deliver world-class solutions.
"In this regard, PETRONAS has been an important partner through initiatives such as the vendor development programme (VDP), financing support and programmes that promote responsible, inclusive and sustainable business practices," he said.
Awang Tengah also expressed appreciation to PETRONAS for its longstanding commitment to nurturing local participation and strengthening industry capabilities in Sarawak.
Between 2014 and March this year, he said, contracts valued at RM49.31bil were awarded to Sarawakian vendors.
About 60% of the contracts were executed within Sarawak, ensuring that a substantial portion of the value generated remained within the state's economy.
In the first quarter of this year, 267 Sarawakian vendors secured RM1.57bil worth of contracts, representing over 32% of the total jobs awarded in Sarawak.
"Going forward, continued collaboration between the government, PETRONAS, petroleum arrangement contractors, industry associations and local businesses will be essential to create an environment where innovation thrives and opportunities translate into lasting economic value for Sarawak and Malaysia," Awang Tengah said.
During the ceremony, PETRONAS and the Sarawak government honoured 82 local vendors for their contributions and excellence to strengthen the state's oil and gas service equipment ecosystem in 2025.
Two companies also received the Sarawak New Frontier Awards for venturing into higher-value and emerging areas of the oil and gas value chain.
