Petros gears for more profits, jobs. Now nation's No. 3 player after Petronas and Shell within just seven years
Published on: Sat, Jul 19, 2025
By: Sherell Jeffrey Text Size: Joseph said the Kuching project would begin with LNG-to-power infrastructure followed by industrial park development and culminate in high-value manufacturing including low-carbon hydrogen for steel production and ammonia for fertilisers. KUCHING: Sarawak through Petroleum Sarawak Berhad (Petros) is bent on creating more jobs and making sure bigger profits stay in the State by moving towards downstream processing instead of just pumping out raw oil and gas and selling them. 'For decades, Sarawak mostly just dug up raw materials and shipped them out … extract, export, repeat,' said Petros Senior Vice President of Growth Datuk Joseph Podtung.
Advertisement 'There was not much processing of these materials or strong supporting businesses around them, which meant no ripple effect of economic benefits,' he said. The result, he said, has been shortened value chains, limited spin-offs and few high-income careers. 'Instead of continuing this approach, Petros is changing from simply producing large amounts of raw gas to focusing on creating products from it,' he said, citing turning natural gas into methanol, hydrogen and ammonia before advancing to more sophisticated manufacturing. 'We are not saying no to Liquefied Natural Gas (LNG). In fact LNG is important because it brings hard currency. It keeps our hub full. It makes Sarawak globally relevant. 'But, if we continue to export, we miss a far greater opportunity in industries, jobs and innovations that will eventually be created through domestic development that allow value chains to be created,' he said. 'Sarawak holds 60 per cent of Malaysia's total natural gas reserves and operates the cleanest electricity grid in the region at just 0.19 kg CO2 per kWh, primarily from hydroelectric power,' he said. 'Sarawak has all the inherent ingredients to unlock the low-carbon economy in this region. It is not just resource-rich, it is development-ready,' he added. He said the Sarawak Gas Roadmap, launched in 2021, is a 10-year strategic plan by the Sarawak Government led by Petros and centres on four development hubs across the State. 'In Miri, the first onshore gas drilling project in over 30 years is underway and a new 500-megawatt power plant is expected to be commissioned by 2027. 'Samalaju will benefit from a 65km pipeline from Bintulu due for completion by year-end, while Bintulu's petrochemical hub has already begun operations with a methanol plant,' he said. Additionally, he said Petros is planning a low-carbon industrial hub through a three-wave approach. 'Currently, Kuching lacks pipeline gas infrastructure, relying instead on diesel and imported LPG. 'Can you imagine, in the capital of an energy-rich State, Kuching has no pipeline gas. 'Without action now, Kuching may not be able to shape the low-carbon economy in Sarawak and beyond,' he said. He said the Kuching project would begin with LNG-to-power infrastructure followed by industrial park development and culminate in high-value manufacturing including low-carbon hydrogen for steel production and ammonia for fertilisers. He pointed out that Petros has secured two anchor partners – China Jiangsu International and Sumitomo Corporation – selected from over 300 candidates. 'These two anchor partners have vast experience in developing industrial parks, not only domestically but internationally. Together, we are not building a facility, we are building an ecosystem.' He said the economic impact is substantial, pointing out that at full scale, the Sarawak Gas Roadmap is expected to deliver RM300 billion in investment, generate RM120 billion in annual output, comparable to the projected Johor-Singapore Special Economic Zone and create 180,000 jobs. 'This is about leverage, turning our resources into hydrogen, methanol and ammonia, into high-value manufacturing that produces advanced materials and low-carbon products. 'In doing so, we keep the economic value of energy circulating within our own economy, not just extracting, but multiplying,' he said. He pointed out that Petros, which was established in 2017, is now Malaysia's third-largest oil producer after Petronas and Shell and has already invested RM15 billion in the roadmap across various projects. 'Sarawak is not speculating. We are executing. We have the ingredients, the roadmap and momentum. Our strategy is about moving from volume to value and from resource to resilience,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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