DUN Sarawak: Miri Gas Hub to attract investment, create new jobs

KUCHING, 13 Oct: The development of Miri as a strategic gas hub under Sarawak's Property Gas Plan (SGR) is expected to attract new investment and create high-value employment opportunities for the people of Sarawak.

Deputy Minister of International Trade, Industry and Investment Sarawak, Datuk Dr Malcolm Mussen Lamoh said that the Government of Sarawak through Petroleum Sarawak Berhad (PETROS) is developing an integrated gas and energy ecosystem to support the growth of oil and gas industry, oil and gas services as well as gas-based economic activities in northern Sarawak.

According to him, the development of the Miri Gas Hub is supported by an integrated infrastructure network that includes upstream and downstream gas production, gas reception facilities, the Miri Combined Cycle Gas Turbine (CCGT) Power Plant with a capacity of 500 megawatts (MW), small-scale liquefied natural gas (LNG) facility as well as LNG truck facility.

"By the third quarter of 2026, CCGT Miri's RM2.5 billion project has achieved 63 percent construction progress, with commercial operations expected to commence by the end of 2027.

"When operational, the plant is expected to use about 75 to 80 million cubic feet of natural gas per day to provide more reliable and efficient electricity supply for northern Sarawak", he said.

He said this in response to a question by the Member of the State Legislative Assembly (DUN) Pujut, Adam Yii Siew Sang at the 19th Sarawak State Legislative Assembly Conference today.

Malcolm explained that the addition of electricity generation capacity supported by wider access to local natural gas is expected to increase Miri's attractiveness as an investment destination particularly in the distillation sector, gas-based industry and energy related services.

Meanwhile, PETROS through Sarawak Gas Distribution (SGD) has also expanded the domestic gas distribution network in Miri, which currently supplies pipeline gas to 1,362 commercial customers and four industrial customers.

According to him, the expansion of the network is expected to support the growth of commercial, industrial and displacement activities in the city.

He said that the Government of Sarawak is also working with the Federal Government to develop a special and enhanced investment incentive package for eligible investments under SGR.

"The proposed incentives are intended to complement existing Federal incentives and encourage investment across the gas and energy value chains.

"The package is proposed based on objectives and results, taking into account investment value, high-value job creation, Sarawak labour force development, technology and knowledge transfer, participation of local companies in supply chain, research and development (R&D), generating value as well as sustainability aspects", he said.

Malcolm said the development of the Gas Miri Hub is expected to strengthen the city's position as a strategic gas and energy hub for northern Sarawak, as well as open up opportunities for local companies to join the supply chain and expand business and employment opportunities for people in the state.