Media Release

21 · Feb · 2024
PCG and Sarawak Petchem to Collaborate in Exploring the Potential Development of a Low-carbon Ammonia and Urea Plant in Bintulu, Sarawak

Kuala Lumpur, 21 February 2024 – PETRONAS Chemicals Group Berhad (PCG) today signed a Memorandum of Understanding (MoU) with Sarawak Petchem Sdn. Bhd. (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 / Chief Executive Officer (MD/CEO) YBhg. 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, Ir. Yaacob Salim. The event was witnessed by the The Right Honourable Premier of Sarawak, Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari Tun Datuk Abang Haji Openg; Sarawak Petchem Chairman, YBhg. Tan Sri Datuk Amar (Dr) Haji Abdul Aziz bin Dato Haji Husain; PETRONAS Chairman, YBhg. Tan Sri Dato’ Seri Mohd Bakke Salleh; as well as the PETRONAS President and Group CEO Tan Sri Tengku Muhammad Taufik.


“The collaboration to jointly study the potential development of a world-scale Low-Carbon Ammonia and Urea plant is very much welcomed. This plant will have a future capability to produce ammonia with a very low carbon footprint; it is indeed a strategic initiative to capitalise on opportunities within the global energy transition market,” said The Right Honourable Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari.


YBhg. Tan Sri Datuk Amar (Dr) Haji Abdul Aziz further added, “This collaboration allows us to capitalise on synergies, optimise costs, and share the risks, thereby maximising value for Sarawak and Malaysia. This further exemplifies our prudent business practices and collaborative mindset. This joint development initiative serves as a catalyst for economic development in Sarawak, driving job creation and fostering sustainable growth in line with the objectives outlined in the Sarawak Post COVID-19 Development Strategy 2030 (PCDS 2030).”


“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. 



(From the left) Sarawak Petchem (SP) Chairman, YBhg. Tan Sri Datuk Amar (Dr) Haji Abdul Aziz bin Dato Haji Husain; SP Head of Finance & Commercial, Abdul Razak Ali; Deputy Minister for Energy and Environmental Sustainability of Sarawak, YB Datuk (Dr) Haji Hazland Abang Hipni; Sarawak State Secretary, YB Datuk Amar Haji Mohamad Abu Bakar Marzuki; SP MD/CEO, YBhg. Dato’ Mohammad bin Haji Ibrahim; Premier of Sarawak, YAB Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari Tun Datuk Abang Haji Openg; PETRONAS Chairman, YBhg. Tan Sri Dato’ Seri Mohd Bakke Salleh; PCG MD/CEO, Mazuin Ismail; PETRONAS President & Group CEO Tan Sri Tengku Muhammad Taufik; PCG Head of Strategic Planning & Ventures, Ir. Yaacob Salim; and PCG Chairman, YBhg. Datuk Ir. (Dr) Abdul Rahim Hashim at the MoU signing ceremony.


About Sarawak Petchem Sdn Bhd


Sarawak Petchem owns and operates the region’s first mega-methanol plant in Sarawak.  Once operational in Q2 2024, the plant is capable of producing 5,000 MTPA of methanol, making it the first Sarawak’s entity to venture into the oil and gas downstream business.


Incorporated in 2017, Sarawak Petchem’s foray into the petrochemical business has significantly transformed Sarawak into a petrochemical hub in the region.  As the catalyst to this economic transformation, Sarawak Petchem plays an integral part in helping the Sarawak Government attracts investors to set up their facilities in the Petchem Industrial Park in Bintulu.


About PETRONAS Chemicals Group Berhad


PETRONAS Chemicals Group Berhad (PCG) is the leading integrated chemicals producer in Malaysia and one of the largest in Southeast Asia. It operates a number of world-class production sites in Malaysia, Asia-Pacific, Europe and North America. With a total combined production capacity of 15.4 million metric tons per annum (mtpa), it is involved primarily in manufacturing, marketing and selling a diversified range of chemical products, including olefins, polymers, fertilisers, methanol, other basic chemicals, derivative products and specialty chemicals. 


Listed on Bursa Malaysia with more than three decades of experience in the chemicals industry, PCG is established as part of the PETRONAS Group to maximise value from Malaysia’s natural gas resources.


PCG is committed to ensuring that its business practices are in line with globally recognised standards for Economic, Environment, Social & Governance (EESG) practices. It is currently listed in the FTSE4Good Bursa Malaysia (F4GBM) Index and the Dow Jones Sustainability™ World Index. 



For more information, please contact: 


Yogeswari Thangavelu

Media Relations, Strategic Communications & Administration Department


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