KUCHING: State-owned Petroleum Sarawak Bhd (Petros) is investing RM2bil in a combined-cycle gas turbine (CCGT) power plant project in Miri, Sarawak.
The 500MW power plant, expected to be completed by 2027, has the potential to supply electricity to neighbouring Sabah and Brunei.
According to Sarawak Premier Tan Sri Abang Johari Tun Openg, the CCGT power plant could be one of its kind in the region, as it combines hydrogen and steam to generate electricity.
The plant will utilise advanced gas turbines with heat recovery steam generators and steam turbines to deliver cleaner and more efficient energy to the Sarawak grid network.
The facility co-generate electricity using 70% methane gas and 30% hydrogen.
Petros chairman Tan Sri Hamid Bugo said the CCGT power plant is part of its broader Sarawak Gas Roadmap, designed to promote a cleaner and more efficient use of natural gas.
“It aims to provide a sustainable and environmentally friendly energy solution for domestic use, power generation and industrial applications,” he said at the project’s ground-breaking ceremony in Lutong, officiated by Abang Johari.
Hamid added that the technology in the integration of both gas and steam turbines for electricity generation offers many advantages, such as its high efficiency of 50% to 60% as compared to the 40% efficiency of traditional single-cycle power plants.
He highlighted that this system reduces emissions and contributes to cleaner energy production, which is essential in addressing climate change.
“Additionally, the CCGT plant’s quick startup and shutdown capabilities make it ideal for balancing fluctuations in renewable energy sources, like wind and solar.
“It is also scalable, providing flexibility in energy production to meet future demand,” the Petros chairman said.
Hamid further noted that the plant’s efficiency and lower fuel consumption would result in lower operating and maintenance costs compared to traditional power plants.
The CCGT power plant, the first of several major projects planned under the Sarawak Gas Roadmap, will replace the existing Sarawak Energy Bhd’s existing open-cycle plant, producing lower carbon intensity electricity for the state’s power grid.
Abang Johari said similar power generation projects would also be implemented in Bintulu and Kuching, as part of the three energy hubs planned under the Sarawak Gas Roadmap.
Once fully operational, the three gas hubs will supply gas to the northern, central, and southern regions.
“Sarawak is rich in energy resources (hydro, gas and other renewables) which could be shared with our neighbours.
“Through Petros, our business is not just for Sarawak but for the whole of Malaysia and our neighbours, including (planned) supply of one GW of electricity each to Singapore and Peninsular Malaysia (via undersea transmission cables).
“Once that happens,Sarawak will become the hub of energy production in the region,” he added.
According to the premier, Sarawak’s broader vision is to generate one GW of electricity by 2030 and 1.5GW by 2035, leveraging on a mix of hydro, gas, hydrogen and solar energy sources.
Miri, the first city in Sarawak to have piped gas to homes, will see an expansion of this service.
Currently, Petros’s wholly-owned subsidiary, Sarawak Gas Distribution Sdn Bhd, is funding the installation of gas pipes for residential homes in the Quadruplex Tam Ceria housing estate in Permyjaya, Miri, under the community gas infrastructure project.
The five-phase project, which is now advancing into Phases 2 and 3, will eventually benefit more than 3,000 lower-income households.
The installation cost per household is about RM3,000.
Abang Johari, who inspected the installation project a week ago, said Kuching will be the second city to received piped gas once the energy hub is completed.
He added that with piped gas, residents would no longer need to purchase gas cylinders, as the gas would be supplied directly to their kitchens.
In December 2023, another Petros subsidiary, Petros Niaga Sdn Bhd, became the sole distributor of liquefied petroleum gas (LPG) in Sarawak, following the expiration of Mygaz Sdn Bhd’s LPG distribution licence.
Mygaz had previously held a 32% market share before its licence was not renewed by the state government.