MEI 2025
Low Carbon Hub To Generate RM120 Bil To State GDP - Premier
KUCHING, Wed: The Kuching Low Carbon Hub programme being planned is expected to contribute about RM120 billion to Sarawak’s GDP annually when fully operational, the Premier of Sarawak, Datuk Patinggi Tan Sri Abang Haji Johari Tun Abang Haji Openg said today.
According to the Premier, with Sarawak’s legislative and executive authority over gas distribution confirmed, it would ensure regulatory clarity and stability to facilitate the growth of the gas industry.
The Premier said these in his winding-up speech at the end of the DUN sitting here, today.
Earlier, he spoke at length on the recent Joint Declaration between the Federal and Sarawak governments that spelt out the responsibilities of both Petronas and Petros in the development of the O&G industry in Sarawak.
The Premier said the Sarawak Government would implement plans to increase gas production within its territory, for sustainable utilization of gas by industries and for production of clean energy.
“All these projects will increase the GDP for Sarawak by RM120 billion and create 185,000 high income jobs,” the Premier pointed out.
He told the sitting that the Joint Declaration reaffirmed that Federal and State laws on distribution of gas should be respected by all persons undertaking the distribution and supply of gas in Sarawak.
He pointed out that the Federal laws like the Gas Supply Act 1993 do not apply to Sarawak and Sarawak is exempted from the requirements imposed by section 6(1) and (3) of the Petroleum Development Act, 1974 to obtain the permission of the Prime Minister to undertake distribution of gas business in Sarawak.
“The Joint Statement also acknowledges Sarawak’s executive authority over Distribution of Gas.
“The law that governs gas distribution in Sarawak is the Distribution of Gas Ordinance, 2016. With the Joint Declaration, any perceived regulatory uncertainty has been removed,” he further said.
He also told the sitting that the efforts towards enhancing the O&G space would provide opportunities in the upstream, midstream and downstream activities for both foreign and local investors.
Such opportunities include the development of carbon capture and storage sites to realize the values of our huge potential gas reserves located in the waters off western Sarawak,so as to secure sufficient gas for the Kuching Low Carbon Gas Hub currently being planned, he added.