The Term Sheet Signing between Syarikat SESCO Berhad and Malaysia LNG Sdn Bhd
Deliver on 04 Mar 2021

Click here for  The Term Sheet Signing between Syarikat SESCO Berhad and Malaysia LNG Sdn Bhd pdf files.



YAB Datuk Patinggi (DR) Abang Haji Abdul Rahman Zohari Bin Tun Datuk Abang Haji Openg

Chief Minister of Sarawak


THE Term Sheet Signing

between Syarikat SESCO Berhad

and Malaysia LNG Sdn. Bhd.

4 March 2021



Salam alaikum, salam sejahtera and good morning to all.

Terima kasih kepada Sarawak Energy dan Petronas yang telah menjemput saya untuk hadir pada majlis menandatangani Perjanjian Term Sheet antara kedua-dua pihak pada pagi ini.
Majlis ini begitu penting bagi kedua-dua pihak kerana ia menandakan usaha ke arah kerjasama yang lebih erat untuk membawa manfaat kepada Petronas dan Sarawak melalui Sarawak Energy dalam suasana yang stabil di negeri ini.

I am delighted to join all of you at today’s term sheet signing ceremony between SESCO & MLNG, marking a key milestone in the relationship between Sarawak Energy and PETRONAS.
This term sheet signing allows Sarawak to continue to share our renewable energy resources with other energy players in developing a sustainable energy future.

The commitment to provide 90MW of power supply to the Malaysia LNG complex in Tanjung Kidurong for a term of 20 years indicates confidence in not just Sarawak Energy’s ability to provide power but also attests to PETRONAS’ confidence in their long-term presence in Sarawak.
The historic signing of the CSA on December 7 last year between Petronas and Sarawak should also be an indication of an enduring partnership between both parties in the development of both

the upstream and downstream of the oil and gas resources in Sarawak for our common benefits.
The agreement today also builds upon the Memorandum of Understanding signed last year between the two parties to jointly explore the commercial production of green hydrogen to progress a green hydrogen economy for Sarawak and beyond. 

Ladies and gentlemen,

The Term Sheet reaffirms Sarawak’s position as an ideal sustainability-driven investment destination.
As a result of farsighted and long-term strategic planning, Sarawak has clear competitive differentiators and value propositions that we offer to prospective investors by providing competitively-priced renewable and reliable power, connectivity infrastructure, investment infrastructure, friendly business policies and competent and trainable workforce.
I am happy to note that Sarawak continues to be among the top five investment destination in the country recording an approved investment worth RM19.6 billion last year.

Renewable Energy & High-Income Economy

Ladies and gentlemen, 

The Sarawak GPS Government is committed to ensuring that all development takes place responsibly and sustainably as we work together towards our goal of a high-income economy by 2030.
We want to strike a practical balance between socio-economic development and environmental wellbeing.
This is demonstrated by our early decision to focus on renewable hydropower development as one of the enablers to attain a high-income status by 2030 through the Sarawak Corridor of Renewable Energy in 2009.
We also retained our thermal gas and coal fired power plants to provide security of supply.
This strategic energy policy shift just over a decade ago has yielded many benefits for Sarawak and its people, including:

Enabling competitively priced electricity tariffs lower than elsewhere in Malaysia and the region;
Boosting economic growth by attracting investments to Sarawak. Between 2008 to 2020, 12 PPAs have been signed with industries in SCORE as well as a Power Exchange Agreement for the Interconnection with PLN in West Kalimantan and a total of 2,900 MW has been committed.

We have spearheaded the creation of a sustainable energy future with long-term benefits for Sarawak that those beyond our shores can also enjoy.
To remain resilient in adapting to the new normal and to prepare for our future economic growth and development, I announced the ‘Post COVID-19 Exit Economic Strategy up to 2030’ in May of last year with digital economy and environmental sustainability as the two core principles.
As part of this, we also launched the Sarawak Economic Action Council - the renewable energy workstream’s sector led by Datu Haji Sharbini.
This builds upon the proven success of our renewable energy development strategy.
In anticipation of the future growth in organic, industrial and export demand for electricity from Sarawak, we will continue with our renewable energy endeavours.

Sarawak Energy is constructing the 1,285MW Baleh Hydropower Project which is expected to come onstream in 2026.
The federal government’s recent recognition of our large hydro energy potentials is another sign of hydropower’s importance in the creation of a prosperous and green economy towards 2030 and beyond.
Future frontiers include green hydrogen production as well as floating solar in our hydro dams.

 The Sarawak government is embarking on green technology through extension of hydrogen power besides hydro power. The combination of both strategic power source would enable Sarawak to play its role in the global shift amidst the issues of global warming.
This is in line with the objectives of the Paris Accord as a platform for world economic growth powered by environmentally friendly energy.
Sarawak, with its abundant source of renewable power as well as its desire to use technology as an enabler, will usher change in its development strategy towards a developed entity by 2030.
All economic sectors will be driven by green technology and this include reafforestation, agriculture and manufacturing. The blueprint will be made public soon after the final draft of our post-Covid-19 economic exit strategy.

Finally, I would like to congratulate Petronas on the recent discoveries of gas fields offshore Sarawak and it is the desire of Sarawak to collaborate with Petronas within the context of the CSA.
It is also the desire of Sarawak to have sufficient and a consistent supply of natural gas as feedstock for downstream gas activities in Sarawak, particularly in the effort to turn Bintulu into a gas hub.
It is my hope that Sarawak Energy and PETRONAS will continue to foster greater collaborations, built upon our shared history of friendship and partnership to ensure sustainability and long-term prosperity for all.
Thank you.