Sarawak, the largest state in Malaysia, is rich in natural resources and cultural diversity. It is now attracting global attention as a valuable investment destination. The state boasts the highest natural gas production in Malaysia and operates hydroelectric power plants with a combined capacity of about 3.5 GW, with plans to expand to 15 GW by 2035. In May, HighChem signed a Memorandum of Understanding (MOU) with Sarawak Petchem, a state-owned company, agreeing to collaborate on local business development utilizing HighChem’s proprietary SEG® technology.
Today, we present highlights from HighChem’s visit to Sarawak, Malaysia, along with a full overview of the SEG® project underway in the region.
Today, we present highlights from HighChem’s visit to Sarawak, Malaysia, along with a full overview of the SEG® project underway in the region.
First SEG® Project Outside China Begins in Sarawak, Malaysia!
Right: YBhg. Dato' Mohammad Haji Ibrahim (CEO of Sarawak Petchem)
Left: Mr. Chao Gao, President & CEO, HighChem Co., Ltd.
In May 2025, HighChem signed an MOU with Sarawak Petchem, a company owned by the Sarawak state government. The MOU outlines a plan for both parties to jointly develop and construct a plant in the Bintulu petrochemical industrial park using HighChem’s SEG® technology, which produces ethylene glycol from synthesis gas.
The MOU also includes a framework for future projects that utilize Sarawak’s abundant natural resources to promote sustainability and accelerate the global deployment of HighChem’s green chemical technologies. The planned SEG® plant will initially use syngas derived from natural gas, but the feedstock is expected to gradually transition to green hydrogen from renewable energy and CO₂ from biomass as such sources are developed in Malaysia.
Courtesy Visit to Premier Abang Johari of Sarawak
Prior to the signing ceremony, the HighChem delegation paid a courtesy visit to Sarawak Premier Abang Johari. During the meeting, the Premier praised the rapid progress between Petchem and HighChem leading up to the MOU and expressed strong support for HighChem’s growth in Sarawak. He also assured that, through future cooperation with international ports such as Port Abu Dhabi, the logistics network for products manufactured using HighChem's technology in Sarawak would be expanded.
HighChem’s Division Director Mr. Konishi Joins Roundtable at Hydrogen Economy Forum
At the Hydrogen Economy Forum, where the MOU signing ceremony took place, Mr. Konishi, Director of HighChem’s C1 Business Division, participated in the roundtable as a panelist. In his English-language presentation, he introduced HighChem’s business, highlighted the advantages of the SEG® project planned for Sarawak, and outlined the roadmap for transitioning to greener feedstocks.
In his presentation, Mr. Konishi explained that HighChem has already licensed the SEG® technology 23 times in China, with a total production capacity reaching 10 million tons per year, utilizing 1.3 million tons of hydrogen annually. He discussed the appeal of implementing this project in Sarawak. He also reiterated the plan to begin with natural gas as feedstock and gradually shift to green hydrogen and biomass-derived CO₂. He emphasized that, from a carbon recycling (CCU) perspective, the most efficient use of hydrogen is within local industries, expressing HighChem’s commitment to leveraging green resources and investing in downstream sectors in Sarawak.
Site Visit to the Planned SEG® Plant in Bintulu Industrial Park
industrial park is located, to inspect the site. The park houses a 1.75 million-ton-per-year methanol plant that began operations last year under Sarawak Petchem, and investment toward downstream product development is gaining momentum. The land adjacent to this methanol plant has been secured for the construction of the SEG® plant, and the site was inspected together with Petchem executives and engineers. The delegation also visited the jetty used for methanol transport, confirming further cooperation for project advancement.
Aerial view of the 1.75 million ton/year methanol plant
SEG® plant construction planned within the same industrial park
