Sarawak advances in energy sector with SISGES onshore gas plant kick-off in Bintulu

Marking a pivotal stride in Sarawak‘s energy landscape, the Sarawak Integrated Sour Gas Evacuation System (SISGES) project celebrates its launch with a cornerstone-laying event for its initial phase of the Bintulu onshore gas plant.

Key Insights:

Leadership Presence: The Premier of Sarawak, Datuk Patinggi Tan Sri Dr Abang Haji Abdul Rahman Zohari Tun Abang Haji Openg, presided over the ceremony. Among attendees were key representatives from Sarawak ministries and energy giants PETRONAS and Shell Malaysia.

Project Details: SISGES is tailored to leverage over 10 trillion cubic feet (tcf) of gas findings with pronounced contaminants, located off Sarawak’s coast. Fully operational, it’s set to cater to approximately one-third of Sarawak’s gas requirements.

Phased Development: Distributed across two stages, the venture incorporates upstream gas fields and pipeline projects. This leads to channeling gas to two onshore gas plants (OGPs) in the Petchem Industrial Park, Tanjung Kidurong.

Bintulu welcomes first phase of SISGES gas project in Sarawak. Photo courtesy of Petroliam Nasional Berhad (PETRONAS).

Strategic Infrastructure and Collaboration

Promoting cost-effectiveness and development synergy, the onshore project integrates common amenities across the two OGPs. This approach aims to guarantee efficient establishment and operational expenditures.

In the inaugural phase, OGP-1 is designated to source gas from the Rosmari & Marjoram (R&M) gas fields, situated in Block SK318. The management of both OGP-1 and R&M territories is steered by Sarawak Shell Berhad, holding an 80% interest, with PETRONAS Carigali claiming the remaining 20%. As of November 2022, the joint initiative received its official sanction, with projected activation by 2026. The succeeding phase contemplates the Lang Lebah field’s gas being piped into OGP-2. This segment presently undergoes an exhaustive final examination, culminating in a prospective investment verdict by 2024.

Defining the Energy Landscape: SISGES’ Contribution

Mohamed Firouz, PETRONAS Senior Vice President of Malaysia Petroleum Management (MPM), shared insights, stating, “In many ways, the SISGES project is another defining moment in the Malaysian upstream industry, as we continue to push new boundaries in producing high contaminant gas safely. It is expected to be the catalyst for more development of untapped sour gas resources off the coast of Sarawak. We are pleased that Shell and PETRONAS Carigali have embarked on the SISGES Phase 1 project to meet the growing demand for gas. We are also grateful for the continuous support from the Sarawak State Government and local authorities for all the upstream projects in the State, especially for approvals on the Environmental Impact Assessment and land allocation for SISGES.”