SISGES Project Kicks Off with Groundbreaking Ceremony for Onshore Gas Plant 1

BINTULU, 21 September 2023 – The Sarawak Integrated Sour Gas Evacuation System (SISGES) project officially kicks off today with the groundbreaking ceremony for the first phase development of its onshore gas plant in Bintulu.

The Premier of Sarawak, Datuk Patinggi Tan Sri Dr Abang Haji Abdul Rahman Zohari Tun Abang Haji Openg officiated the event. Also present were Sarawak Minister of Food Industry, Commodity and Regional Development, Dato Sri Dr Stephen Rundi Utom; Sarawak Minister of Transport, Dato Sri Lee Kim Shin; PETRONAS Senior Vice President of Malaysia Petroleum Management (MPM), Mohamed Firouz Asnan; PETRONAS Carigali Sdn Bhd’s Chief Executive Officer, Hasliza Othman; and Shell Malaysia Country Chair and Senior Vice President Upstream Malaysia, Siti Hurrairah Sulaiman.

The SISGES scheme was envisioned to monetise more than 10 trillion cubic feet (tcf) of gas discoveries with high contaminants, off the coast of Sarawak. It will be implemented in two phases, comprising a series of upstream gas fields and pipelines development, followed by the feeding of gas into two onshore gas plants (OGPs). Both phases are sited in the Petchem Industrial Park in Tanjung Kidurong. At full capacity, the scheme will supply about a third of Sarawak’s gas demand.

To optimise synergy between the two OGPs, the onshore development incorporates common facilities to be shared which will result in efficient development and operating costs.

Under the first phase, OGP-1 will receive gas from the Rosmari & Marjoram (R&M) gas fields in Block SK318. Both OGP-1 and R&M fields are operated by Sarawak Shell Berhad with 80 per cent participating interest with PETRONAS Carigali holding the remaining 20 per cent. The integrated project was sanctioned in November 2022 and the fields are expected to come onstream by 2026. The second phase will see gas from the giant Lang Lebah field flowing into OGP-2. The project is currently undergoing a comprehensive final review process, leading up to the forthcoming investment decision in 2024.

Mohamed Firouz said, “In many ways, the SISGES project is another defining moment in the Malaysian upstream industry, as we continue to push new boundaries in producing high contaminant gas safely. It is expected to be the catalyst for more development of untapped sour gas resources off the coast of Sarawak. We are pleased that Shell and PETRONAS Carigali have embarked on the SISGES Phase 1 project to meet the growing demand for gas.  

“We are also grateful for the continuous support from the Sarawak State Government and local authorities for all the upstream projects in the State, especially for approvals on the Environmental Impact Assessment and land allocation for SISGES.”

PETRONAS, through MPM, manages petroleum arrangements in Malaysia and provides stewardship on upstream petroleum activities in meeting the energy demand of its customers. For more information on investment opportunities in Malaysia, please visit https://www.petronas.com/mpm/