PETROS And CJI Sign Framework Agreement For Kuching Low-Carbon Hub (KLCH)

NANJING / 11/12/2025

NANJING, 11 December 2025 – In a major step towards realising Sarawak’s green economic ambitions, Petroleum Sarawak Berhad (PETROS) today formalised a pivotal partnership with China Jiangsu International (CJI) for the multi-phase development of the Kuching Low-Carbon Hub (KLCH).

The signing of the Framework Agreement builds upon the Strategic Cooperation Agreement inked on 20 May 2025, which appointed CJI as one of two anchor partners for the groundbreaking hub. 

CJI’s selection followed a data-driven evaluation process conducted over nearly two years, during which PETROS assessed more than 300 international players, held in-depth discussions with over 60 potential investors, and shortlisted four high-potential companies before identifying the final two anchor partners.

CJI emerged as a strong fit based on its robust financial capacity, global investment networks, a proven track record in delivering large-scale industrial projects, and its commitment to Sarawak’s workforce participation and talent development. 

The ceremony, held at the CJI Headquarters in Jiangsu Province, China, was witnessed by the The Right Honourable Premier of Sarawak, Datuk Patinggi Tan Sri (Dr.) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg, and the Deputy Minister of Utility and Telecommunication Sarawak, Datuk Ibrahim bin Baki, underscoring the project’s high-level significance for the state’s future.

Under the newly signed framework, PETROS will lead and oversee the creation of an overall masterplan for the KLCH, ensuring that its development aligns with Sarawak’s long-term economic and energy transition strategies. 

CJI, a global leader in engineering and industrial development, will contribute its strategic, technical and commercial expertise to strengthen the hub’s capabilities. 

This includes supporting the development of infrastructure such as an industrial park, deep-sea port, and LNG-to-power facilities.

A core component of the partnership is the mobilisation of CJI’s extensive international networks to attract credible investors and strategic partners. 

In line with this, the event also featured the signing of MOUs with seven potential investors, each expressing their intention to collaborate in developing an industrial park within the KLCH. 

Tan Sri Datuk Amar (Dr.) Hamid Bugo, Chairman of PETROS, stated, “These signings reflect a significant partnership between Jiangsu and Sarawak, reinforcing our roles as trusted partners in regional energy and industrial cooperation.”

He added, “Through these strategic partnerships, Sarawak will strengthen its global connectivity, leveraging international expertise to build local capacity and positioning Kuching as an ideal low-carbon industrial hub in Southeast Asia.”

The signing of this Framework Agreement signals the accelerated commencement of KLCH’s development phases, setting the stage for transformative infrastructure projects, stronger global partnerships, and sustained investment mobilisation in the coming years.