Petronas Chemicals/Sarawak Petchem tie-up for low-carbon ammonia/urea project in Malaysia

Petronas Chemicals/Sarawak Petchem tie-up for low-carbon ammonia/urea project in Malaysia

Malaysia’s Petronas Chemicals Group Berhad (PCG) has signed a Memorandum of Understanding (MoU) with Sarawak Petchem to conduct a joint feasibility study to develop a low-carbon ammonia and urea plant in Bintulu, Sarawak.

Under the terms of the MoU, the two companies will conduct a joint comprehensive study on the technical and commercial aspects, among other considerations, in meeting the rising demands for cleaner energy solutions by tapping into the renewable energy potential within the region.

The MoU was signed by Sarawak Petchem’s Managing Director/CEO Dato’ Mohammad Haji Ibrahim and Head of Finance & Commercial Abdul Razak Ali, while PCG was represented by its MD/CEO Mazuin Ismail and Head of Strategic Planning & Ventures, Yaacob Salim.

“We welcome this opportunity to work with Sarawak Petchem, as it will further strengthen our working relationship with the State of Sarawak. This is potentially PCG’s first low-Carbon project and underlines our commitment to drive the sustainable transformation within our value chain. This collaboration with Sarawak Petchem not only aligns with PCG’s and the nation’s sustainability objectives, but also facilitates our further expansion into the Southeast Asian urea market. Additionally, it presents an opportunity to leverage Sarawak’s renewable energy resources while complementing our efforts in developing Carbon Capture and Storage (CCS) facilities,” said Mazuin.

Low-carbon ammonia is predominantly utilised in the hydrogen and power sectors for co-firing, bunkering and future sustainable ammonia applications while urea serves primarily as a fertiliser, a raw material for resins in plywood and adhesives, as well as diesel exhaust fluid for automotive applications.