BANGKOK – Sarawak is seeking to reshape its petrochemical industry around a circular economy model, with greater emphasis on higher-value downstream products, resource efficiency and lower carbon emissions.
Deputy Minister of Energy and Environmental Sustainability Datuk Dr Hazland Abang Hipni said the approach would support the state’s wider decarbonisation agenda while creating opportunities to extract greater economic value from its gas and low-carbon energy resources.
He said one area being explored was the expansion of gas-based downstream manufacturing in Bintulu, including technologies capable of using carbon dioxide as a feedstock for petrochemical production.
“This is about moving up the value chain, including materials for clothing and methods of recycling products produced from gas,” he said while speaking at the Asia Refining & Petrochemicals Tech Forum (ASIA-TECH) 2026 in Bangkok on Wednesday.
The proposed shift could see Sarawak’s gas resources and low-carbon energy being used to manufacture products such as polyester base materials, packaging and textiles rather than focusing primarily on conventional upstream and basic downstream outputs.
Hazland said such developments could generate additional economic value while creating demand for workers with specialised technical and industrial skills.
Among the projects being discussed is a proposed syngas-to-ethylene glycol plant at the Bintulu Petrochemical Industrial Park, following a memorandum of understanding between HighChem and Sarawak Petchem.
HighChem has also proposed using Sarawak as a pilot location for technology designed to convert carbon dioxide into paraxylene, a key feedstock used in polyester production.
The proposal forms part of wider discussions on potential investment of about US$1 billion in Bintulu for gas-based downstream products.
According to Hazland, discussions involving Indorama, HighChem and Sarawak Petchem are focused on developing the downstream sector while bringing technology and technical expertise into the state.
Technology and skills transfer are also being prioritised as part of the proposed industrial development, with the aim of strengthening the capabilities of Sarawakians to participate in higher-skilled roles within the petrochemical sector.
Beyond conventional petrochemicals, Sarawak is also examining several lower-carbon products and fuels as it seeks to broaden its energy and industrial base.
These include sustainable aviation fuel (SAF), low-carbon methanol, ammonia, urea and monoethylene glycol (MEG).
For SAF, several production pathways are being assessed, including Fischer-Tropsch, Methanol-to-Jet and hydroprocessed esters and fatty acids (HEFA).
Potential feedstock sources under consideration include biomass and materials derived from palm oil mill effluent (POME), reflecting efforts to make greater use of available resources within the state’s industrial and agricultural sectors.
Hazland said the viability of these initiatives would ultimately depend on several factors, including technical feasibility, production costs, market demand and the ability of industry players to work together.
The emphasis on these conditions reflects the need to balance environmental objectives with commercial considerations as Sarawak seeks to develop new downstream industries.
ASIA-TECH 2026, held in Bangkok from October 7 to 8, brought together industry leaders, petrochemical producers, energy companies and technology providers to discuss changes across the downstream sector.
Key areas addressed at the forum included industrial decarbonisation, low-carbon fuels, circular economy practices and carbon management.
Sarawak’s participation provided an opportunity to engage with international industry players while presenting potential investment opportunities linked to higher-value and lower-carbon downstream development.
The state’s focus on circular production, carbon utilisation and downstream manufacturing forms part of its broader effort to expand the value derived from its energy resources while positioning Bintulu for more technology-intensive industrial activity. – Sarawak Daily
