Phase one of O&G complex to start Q4 this year | Borneo Post Online

Posted on : 11 Jun 2019  Source of News: The Borneo Post

Abang Johari greets guests upon his arrival for the MoU signing, accompanied by Awang Tengah (second right) and Assistant Minister of Entrepreneur and Small, Medium Enterprise (SME) Development Datuk Mohd Naroden Majais (right). — Photo by Chimon Upon

KUCHING: Chinese firms Beijing BECA Sci-Tech Co Ltd and Sinopec Engineering Incorporation will be carrying out a feasibility study for the proposed development of an integrated oil and gas complex in Lawas.

Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan said the study is expected to be completed in less than a year, after which the refinery plant project will be carried out in stages.

“It depends on how soon they can complete the feasibility study but once this is completed, they expect to start the first phase of the project in the fourth quarter of 2019,” he told a press conference after the signing of a Memorandum of Understanding (MoU) between the Sarawak government, BECA and Sinopec for the proposed development of the integrated oil and gas complex, here yesterday.

The two Chinese firms have agreed to invest US$5 billion for the proposed refinery plant to be sited on a 400-hectare land in Pulau Sari, Lawas.

Awang Tengah, who is also Industrial and Entrepreneur Development Minister, said both BECA and Sinopec are no strangers to the oil and gas sector.

“Sinopec is one of the biggest companies in the petrochemical industry in China and they have an agreement with Saudi Arabia and Kuwait with regards to feedstock.

“They supply feedstock for operation in China and they make use of that to set up the oil refinery in Lawas,” he said, adding that most of the end products will be marketed to China and offtakers within this region.

Earlier in his speech, Awang Tengah said the Sarawak government will give all necessary support and facilitation to ensure that the proposed project will materialise.

“This is because the project has the potential to create significant socio-economic impacts to Sarawak, particularly in the northern region,” he remarked.

Meanwhile, BECA president Hao Liang said the firm intends to invest billions of dollars to build a refining and chemical integration complex in Lawas with leading technology, highest safety standards and best operational experience.

“Our goal is to meet our environmental and economic requirements for our investment operations, while leaving the local area with a positive impact.

“The project in Lawas will include a world-class deep catalytic cracking (DCC) cracker and associated olefin derivative unit, using world-leading know-how, including 10 million tonnes/year of refinery, 1.2 million tonnes/year of ethylene, and 3.2 million tonnes/year of DCC.”

He added that the MOU marked a significant milestone in the petrochemical development project.

“To ensure the project is operational as soon as possible and contribute to Sarawak’s economic development, BECA will ensure that this industry is further refined, making it stronger and bigger, while working with the people of Sarawak to create a better future,” he added.

The joint venture project will be implemented in stages starting from the fourth quarter of this year and is expected to be completed by 2022.

He said the signing of the MoU is significant for the three parties where the scale and complexity of such a project will attract the attention of Southeast Asia and even Asia as a whole.

The MoU signing was witnessed by Chief Minister Datuk Patinggi Abang Johari Tun Openg, where Ministry of Industrial and Entrepreneur Development permanent secretary Datu Liaw Soon Eng signed on behalf of the Sarawak government while BECA and Sinopec were represented by Hao and vice-president Zhao Xiangdong, respectively.