KUCHING, May 15 — Sarawak Premier Tan Sri Abang Johari Openg today said the state’s oil-and-gas sector, to be bolstered by carbon capture, utilisation and storage (CCUS), is projected to surpass RM60 billion in gross domestic product (GDP) by 2030. He said he is elated that the sector has yielded significant achievements in recent years, with last year the state secured RM10 billion from national oil company Petronas, comprising sales tax, dividends, and royalty.
“Sarawak has also kickstarted a promising CCUS industry. We will have three landmark Carbon Capture and Storage (CCS) projects signed this year, such as Kasawari-M1 project, Lang Lebah-Golok project, and the storage of industrial CO2 emissions M3 project,” he said in his winding-up speech at the Sarawak Legislative Assembly.
He gave an assurance that the state government has developed the necessary legal and regulatory framework for the CCS sector to safeguard the rights and environmental safety of Sarawak. He said all companies wanting to develop and operate CCS in Sarawak must comply with the state’s legal and regulatory framework, including the requirement of Environmental Impact Assessment.
“According to the CCUS Market Global Opportunity Analysis and Industry Forecast 2023-2032, the global CCS market presents a compelling opportunity, with a projected Compound Annual Growth Rate of 13.3 per cent.
“Sarawakian companies are uniquely positioned to capitalise on this nascent market as the region's early movers and I urge them to develop their expertise in this field, establishing themselves as leaders in upcoming regional CCS projects,” he said.
He stressed that with oil and gas and CCUS industry activities accelerating, Sarawak oil-and-gas, services and equipment (OGSE) players play an important role in the success and attainment of this ambition. He added that Malaysia's OGSE sector is projected to reach RM40 billion to RM50 billion by 2030, adding that by leveraging Sarawak's growing oil and gas activity, local OGSE companies can partner and learn from industry leaders, propelling them to regional prominence and, ultimately, global success. “We envision a future with Sarawak OGSE companies listed on the stock exchange, with substantial valuations comparable to international OGSE players,” he said.
