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KUCHING, Oct 19: Sarawak aims to increase domestic natural gas consumption by at least 30 percent by 2030 through the implementation of Sarawak's Sustainable Gas Target Plan (SGR), with gas demand projected to reach 1.2 billion cubic feet per day.
Sarawak Utility and Telecommunications Minister Dato Sri Julaihi Narawi said that the implementation of the plan focuses on development of four strategic hubs in Miri, Bintulu, Samalaju and Kuching to strengthen infrastructure as well as increase gas consumption for domestic needs.
"Sarawak has natural gas reserves ranging from 43 to 46 trillion standard cubic feet (Tscf), equivalent to about 60 per cent of the country's total natural gas reserves", he said while delivering his inaugural address to his ministry at the Sarawak State Legislative Assembly (DUN) Conference, today.
According to him, the appointment of Petroleum Sarawak Berhad (PETROS) as the single gas aggregator of Sarawak aims to strengthen state jurisdiction in terms of procurement, supply, distribution and sale of natural gas, besides developing infrastructure to support domestic consumption.
He stressed Sarawak's position is not to take over the role of PETRONAS, but rather ensure that state rights in gas distribution and partial use of its gas resources can be used to strengthen Sarawak energy security.
In related developments, negotiations between the Government of Sarawak, the Federal Government and PETRONAS are ongoing to reach a jointly agreed commercial settlement.
Among the major projects under SGR is the 500-megawatt combined cycle gas turbine project at Miri, which achieved 63 percent physical progress and is expected to be operational by the end of 2027.
"The 65 kilometre Kidurong-Samalaju gas pipeline project has achieved 96 percent progress and is expected to be completed by the end of 2026, with a standard gas supply capacity of 300 million cubic feet per day", he said.
Meanwhile, the expansion of 'Gas to Bintulu' project worth RM100 million is being phased in and has the potential to benefit over 120,000 households by 2030.
The 'Gas Direct to Kitchen' initiative in Miri has also supplied piped natural gas to over 1,214 households, with the total beneficiaries expected to increase to more than 3,000 households when the project is fully completed.
"The development of Kuching Low-Carbon Hub covering about 15,000 acres has the potential to attract investment in excess of RM300 billion and create 180,000 jobs by 2035", he explained.
In addition, the Sarawak Virtual Pipeline System (VPS) which enables delivery of liquefied natural gas (LNG) from Bintulu using special trucks without requiring physical pipelines, has been completed in Kuching.
The Adong Kechil West (AKW) project, which recorded its first oil production in July 2026, is expected to start producing gas by 2027 with a capacity of up to 20 million cubic feet per day.
Meanwhile, Julaihi said the increase in domestic gas consumption from six per cent to 7.1 per cent was previously contributed by the full operation of Sarawak PETCHEM Sdn Bhd plant in Bintulu at the end of 2025 which also provided employment opportunities for more than 1,000 local children.
Regarding the subsidized liquid petroleum gas (LPG) supply, Julaihi explained that PETROSNiaga Sdn Bhd continues to ensure adequate supplies through a network of 65 distributors and over 300 sub-distributors across Sarawak.
"At present, about 1.8 million PETROS subsidized LPG cylinders are available on the market with a capacity of 700,000 cylinders per month.
"The process of switching yellow subsidized LPG cylinders to PETROS red cylinders one by one without additional charges is also ongoing", he said.
In terms of industrial safety and governance, he said, his ministry also set ISO 29001 certification as a condition for new applications and renewal of gas industry licenses.
So far, a total of 36 gas industry players have been identified in Sarawak, with 21 of them having obtained the certifications.
The implementation of SGR is expected to continue strengthening the state's gas infrastructure, enhancing local resource utilization and supporting Sarawak's economic development in the long term.-TVS
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