@ green | January-February . 2024

Tengku Hassnal is briefed on the State petroleum company ’ s carbon capture initiatives

Tengku Hassanal , who was on a five-day working visit to Sarawak , was received by Deputy Minister for Energy and Environmental Sustainability Sarawak Datuk Dr Hazland Abang Hipni , Petros Chairman Tan Sri Datuk Amar Hamid Bugo and Group CEO Dato Janin Girie .

CHIEF Minister Datuk Seri Hajiji Noor announced that Sabah was making significant strides in embracing the green technology revolution through the RM20 billion green steel project at the Sipitang Oil and Gas Industrial Park ( SOGIP ). The State welcomes investments in renewable energy , improvement of waste management , and sustainable solutions .

At the heads of agreement exchange ceremony between Sabah Energy Corporation Sdn Bhd ( SEC ) and Esteel Enterprise Sabah Sdn Bhd ( Esteel Sabah ), Hajiji emphasised the State ’ s commitment to products based on green technology .

Under the agreement , SEC will supply 100 million standard cubic feet per day ( mmscfd ) of natural gas to Esteel Sabah ’ s steel manufacturing plant and an additional 50 mmscfd for the plant ’ s power generation over the next 20 years . Hajiji highlighted the green steel project ’ s significance as a foundational investment contributing to the State ’ s economic growth and develop-

Team Petros was also represented by SVP for Sarawak Resource Management Nazrin Banu Shaikh Sajjad Ahmad , VP for Human Capital and Relations Ismail Said and VP for Upstream Jeremy Wong .

Amar opened the session with his welcome remarks while Janin shared Petros ’ energy transition strategies and the role of Carbon Capture , Utilisation and Storage ( CCUS ) as an enabler to achieving net-zero emissions and a lowcarbon and sustainable energy future

The exchange ceremony solidifies partnerships between Sabah Energy Corporation and Esteel Sabah , showcasing the State ’ s dedication to ecofriendly solutions and renewable energy initiatives .

ment strategy .

The three-phase green steel project opts for natural gas as a reducing agent instead of coke and coal , resulting in a 70 per cent reduction in carbon emissions , making it low carbon , efficient , and environmentally friendly .

Esteel Sabah , a subsidiary of Singapore ’ s Green Esteel Pte Ltd , signed a land-lease agreement with the Sabah Oil and Gas Development Corporation Sdn Bhd in November 2022 to establish for Sarawak .

He also provided an overview of the development of CCUS in Sarawak , elaborating on how the infrastructure established by sour gas field development can be further expanded to enable both local and foreign emitters to capture and store carbon dioxide in Sarawak .

Tengku Hassanal was accompanied by his ESG Advisor and Enggang Group Chairman Dato ’ Sri Muthanna Abdullah Enggang Group director Dato ’ Sri Harry Alynn Cockrell .

the manufacturing plant at SOGIP in Sipitang .

Phase one of the project , estimated at US $ 1.93 billion , is set to commence this year , aiming for completion by 2026 and creating around 2,795 job opportunities during its operational phase .

The green steel project exemplifies Sabah ’ s confidence in sustainable initiatives , with SEC playing a crucial role in promoting eco-friendly practices and fostering regional development .

SARAWAK Premier Tan Sri Abang Johari Openg recently announced the establishment of a special committee to oversee the State government ’ s collaborations with two foreign entities , Mubadala and Masdar , in oil and gas ( O & G ) and green energy .

The premier revealed that Sarawak has signed a memorandum of understanding ( MoU ) with Mubadala , an oil company with operations offshore in collaboration with Petronas .

Additionally , an MoU has been inked with Masdar , a global leader in green technology owned by the Abu Dhabi government . Masdar is currently investing in floating solar projects in Indonesia .

Abang Johari highlighted Sarawak ’ s focus on renewable energy , encompassing hydro , solar , and algae for sustainable aviation fuel ( SAF ). The special committee , formed to facilitate collaboration between Petros and Mubadala and Masdar with Sarawak Energy Berhad , will work on implementing these MoUs .

During a visit to the UK , Abang Johari noted that British Petroleum ( BP ) expressed interest in partnering with Petros to develop Carbon Capture , Usage , and Storage ( CCUS ) initiatives in Sarawak . He emphasised that Sarawak ’ s recognition as not only net zero carbon but as negative carbon positions the State favourably on the global stage for green energy .

Abang Johari highlighted the State ’ s commitment to being a pioneer in carbon reduction , stating : “ This is a new word … net zero carbon . We are negative carbon , meaning less carbon and more oxygen . So we have that advantage on the world platform towards green energy .”

The strategic partnerships with Mubadala , Masdar , and potential collaboration with BP underscore Sarawak ’ s commitment to advancing sustainable practices and technologies in the energy sector .