Sarawak Energy Secures PPA To Power South East Asia's First Integrated Phosphate Complex

1200 jobs expected to be created by phosphorus plant to be built at Samalaju Industrial Park   

KUCHING, 3rd FEBRUARY 2016, WEDNESDAY:  Sarawak Energy, through its wholly-owned subsidiary Syarikat SESCO Berhad (SESCO), today formalised a power purchase agreement (PPA) with Malaysian Phosphate Additives (Sarawak) Sdn Bhd (MPAS) for the supply of 150MW to power the latter’s integrated phosphate complex, the first of its kind in South East Asia. This monumental development worth RM1.9 billion will be the latest addition to Samalaju Industrial Park in Bintulu, further recognition of the state as an ideal destination for investors given its ability to provide renewable, secure and affordable energy as well as business friendly policies. The plant, scheduled to come online by 2018, is expected to generate some 1,200 employment opportunities of various positions such as projects supervisors, engineers, administrators, accountants, logistics, general workers and others to support its operation. Chief Minister Datuk Patinggi Tan Sri (Dr) Haji Adenan bin Haji Satem officiated at the signing ceremony between SESCO and MPAS, a joint venture company between Malaysian Phosphate Ventures Sdn Bhd, Cahya Mata Sarawak Berhad through its wholly-owned subsidiary, Samalaju Industries Sdn Bhd, and Arif Enigma Sdn Bhd, an investment holding company.

Also present were Datuk Amar Haji Awang Tengah Ali Hasan, Minister of Public Utilities and Industrial Development and Second Minister of Resource Planning and Environment; Tan Sri Datuk Amar Haji Mohamad Morshidi Abdul Ghani, Sarawak State Secretary, Sarawak Energy Board of Directors and senior management and MPAS' senior representatives among others.   Signing for SESCO was Datuk Torstein Dale Sjotveit, Sarawak Energy Group Chief Executive Officer, witnessed by Stephanie Gae Chin, the group's General Manager for Legal.   Signing for MPAS was its Managing Director, Mr.Lim Lee Wan, witnessed by Dato Isaac Lugun, Director of MPAS. In his speech, Torstein said “MPAS' decision to set up the first of its kind integrated phosphate complex here in Sarawak gives the assurance that we are indeed on the right track to realising the state’s aim of becoming the powerhouse for the ASEAN region. This is a giant project, with a yearly plant production capacity of 500,000 tonnes of phosphate additives, 100,000 tonnes of ammonia and 900,000 tonnes of coke with a power demand of 150MW, more than the entire output of our Batang Ai Hydro Electric Plant.

“Upon completion of this project, Samalaju Industrial Park will become the largest Chemicals-Phosphate hub in South East Asia,” he added.

With the boost in generation capacity and lower cost of electricity production from Murum and Bakun, Sarawak has been able to lower its domestic, commercial and industrial tariffs and continue to attract large SCORE customers. Sarawak Energy has signed 14 agreements representing a committed energy demand of more than 3,000 MW under this initial phase of SCORE.

Sarawak Energy Group Chief Executive Officer Datuk Torstein Dale Sjotveit (left) and Malaysian Phosphate Additives (Sarawak) Managing Director, Lim Lee Wan exchanges documents as Chief Minister Datuk Patinggi Tan Sri (Dr) Haji Adenan bin Haji Satem and the others look on.