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Sarawak Premier Abang Johari aims to expand Petros’ investment scope by introducing a sovereign wealth fund model. (Photo: Office of the Premier of Sarawak)
Sarawak Premier Abang Johari Tun Openg is looking to follow in Singapore’s footsteps by transforming state-owned oil and gas company Petros into a sovereign wealth fund that can drive economic diversification and growth. Low-carbon green hydrogen is one of the government’s key priorities.
Johari has also pledged to develop an internationally recognized hydrogen certification system, an effort that signals Sarawak’s ambition to compete in the global energy market.
Petros to play a strategic role in Sarawak’s economic future
In May, Petros signed an agreement with the Malaysian federal government to become the sole gas aggregator in Sarawak, marking a turning point in the long-standing disputes over extraction rights.
Although Sarawak holds 60% of Malaysia’s natural gas reserves, control over production had previously rested with the federal government, sparking tensions between Petros and national oil company Petronas over resource distribution.
Johari emphasized that Petros is not competing with Petronas, but rather collaborating with it and with all other energy investors operating in Sarawak. Looking ahead, Johari said he envisions Petros evolving into a sovereign-style investment vehicle, much like Singapore’s Temasek. “If Petros has the strength, the muscle, why not invest in other areas?” he said.
Sarawak positions itself as a regional green hydrogen hub
Green hydrogen is among Petros’ emerging investment areas. Blessed with abundant natural resources, Sarawak is aiming to become Asia’s hydrogen hub. Speaking at the World Hydrogen Asia Conference in Tokyo on July 10, Johari revealed that Sarawak is assessing the feasibility of setting up a global hydrogen certification platform.
During his keynote speech, he highlighted Sarawak’s Hydrogen Economy Roadmap (SHER), which outlines plans to continue investing in hydrogen-related technologies and innovations to maintain competitiveness. The government is planning to develop a hydrogen certification platform aligned with international standards, intended to enhance transparency, traceability, and market integrity.
There are two ongoing international collaborations in Sarawak: the H2biscus project with a South Korean consortium, and the H2ornbill initiative with Japanese partners. Both projects underscore growing foreign investor confidence in Sarawak’s green hydrogen future.
Sarawak's hydrogen plant, H2biscus, will produce ammonia for export to South Korea. (Image: Samsung E&A)
Despite high costs and limited current demand, Johari acknowledged, advances in transportation technologies offer a promising path forward. He said that while China has been pushing electric vehicles, "even China now is looking into the possibility of using hydrogen" in transportation. In the long run, he believes low-carbon hydrogen could become a catalyst for the voluntary carbon market with Sarawak leading the way in the region.
Source: Nikkei Asia, Bernama
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