KUCHING, Wednesday – The Kuching Low Carbon Hub, a major initiative by the Sarawak Government, is projected to contribute RM120 billion annually to Sarawak’s Gross Domestic Product (GDP) once fully operational, said Premier Datuk Patinggi Tan Sri Abang Haji Johari Tun Openg.
Delivering his winding-up speech at the close of the State Legislative Assembly (DUN) sitting today, the Premier emphasised that the hub is a key part of Sarawak’s strategy to strengthen its gas industry, clean energy development, and create sustainable economic growth.
He said Sarawak’s legislative and executive control over gas distribution had been clearly confirmed, ensuring regulatory clarity and stability for the industry.
“This project will not only increase Sarawak’s GDP by RM120 billion but also create 185,000 high-income jobs for our people,” he highlighted.
The Premier referred to the recent Joint Declaration between the Federal and Sarawak Governments, which clarified the roles of national oil company Petronas and Sarawak-owned Petros in the state’s oil and gas (O&G) sector.
He stated that the Sarawak Government is committed to increasing gas production within its borders, to be used sustainably by industries and to produce clean energy through the Kuching Low Carbon Hub.
According to him, the Joint Declaration reinforces that all parties must comply with Sarawak’s laws when involved in gas distribution within the state. He explained that the Federal Gas Supply Act 1993 does not apply in Sarawak and that the state is exempt from certain conditions under the Petroleum Development Act 1974.
He added, “The Distribution of Gas Ordinance 2016 is the primary law for gas distribution in Sarawak. The Joint Declaration removes any confusion over legal matters.”
The Premier also said Sarawak’s efforts in expanding the O&G sector would open investment opportunities in upstream, midstream, and downstream activities for both local and international players.
This includes developing carbon capture and storage sites to maximise the value of gas reserves off western Sarawak and ensure sufficient supply for the Kuching Low Carbon Hub. – Sarawakku
