The two sides signed an agreement under which the state government and Petronas will undertake a feasibility study of the project, NST Online reported.
Both parties also signed an agreement for Petronas to supply natural gas to Sarawak Energy Bhd for its power plants.
Petronas will supply 250 million standard cubic feet per day to the plant at Tanjung Kidurong and a new 1,200 megawatt plant in Samalaju, both in Bintulu.
A further 200 million standard cubic feet per day will be supplied as feedstock for the petrochemical industry, and 100 million standard cubic feet per day to the Tanjung Kidurong power plant.
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