Sarawak Energy Berhad signed a 20-year gas sales agreement (GSA) with Malaysian national oil company PETRONAS for the supply of 100 MMscf/d of natural gas to its gas-powered plant in Bintulu.
The GSA is part of the overall commitment from PETRONAS to supply Sarawak Energy with 250 MMscf/d of natural gas for Sarawak’s power sector. The remaining 150 MMscf/d will be supplied to Sarawak Energy’s new Combined-Cycle Gas Turbines (CCGT) power plant to be constructed at Samalaju, and will be subject to a separate GSA.
The signing ceremony was witnessed by Malaysian Prime Minister Najib Razak and Chief Minister Adenan Satem. Also present were the Minister for Public Utilities Awang Tengah and other dignitaries. The agreement was signed by Group CEO Torstein Dale Sjotveit and member of the board of director Fong Joo Chung for Sarawak Energy; and PETRONAS executive vice president and CEO for upstream Anuar Taib.
Sarawak Energy is developing gas-powered generation projects over the next 5 to 10 years with a plan to expand gas power generation capacity by an additional 1600MW. Currently, about 15% of Sarawak’s power generation is from its Bintulu and Miri gas-powered plants and 10% from coal resources. About 75% of Sarawak’s current power is derived from the hydropower plants at Murum, Bakun and Batang Ai HEP’s.
"Sarawak Energy’s ideal generation mix is at 60% hydro, 20% coal and 20% gas from Sarawak’s various indigenous energy sources," it said.
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