Skip to main content

Shell MDS Malaysia Celebrates 30 Years In Bintulu

Kuching - The year 2023 year marked a historical milestone for Shell’s Gas-To-Liquids (GTL) plant – known as the Shell Middle Distillate Synthesis Malaysia (Shell MDS Malaysia) in Bintulu.

To commemorate this event, Shell hosted an appreciation event in Kuching recently, which was officiated by the Premier of Sarawak, Yang Amat Berhormat Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg. The event highlighted the plant’s rich history and the journey Shell MDS Malaysia has shared with the Bintulu community.

The anniversary event also coincided with the global product launch of the world’s first commercial scale GTL Synthetic Microcrystalline Wax, which is another achievement to demonstrate Shell GTL’s technology and Shell MDS’ capability in pushing the boundary of innovation. Shell GTL Microcrystalline Wax has high purity with unique properties and is produced at a toller site in Germany using the Shell proprietary GTL Fischer-Tropsch process which makes it suitable for premium applications such as personal care, petroleum jelly, candle blend, coating, pharmaceuticals, food containers/packaging and many more.

“The accomplishments we see today are largely due to the unwavering support from the Sarawak Government. They have consistently recognised Shell MDS Malaysia's significant potential and the socio-economic benefits it brings, impacting not only Bintulu but the entire Sarawak region. The establishment of the Shell MDS Malaysia plant has been a catalyst for Bintulu’s development, creating more job opportunities for locals and paving the way for enhanced township facilities and infrastructure." shared Siti Sulaiman, Country Chair of Shell Malaysia and Senior Vice President, Upstream Malaysia.

Commissioned in 1993, Shell MDS Malaysia stands as the world’s first unique GTL plant. After two decades of research, Shell revolutionised GTL technology, enabling the conversion of natural gas (NG) into ultra-pure liquid fuels, lubricants, chemicals, performance fluids and solid waxes. The company employs over 450 staff, of which nearly 90 percent are Sarawakians.

Shell MDS Malaysia is a pioneer in GTL technology and contributes to the wider development and progress within the larger Shell GTL Business. In 2011, selected members of the Shell MDS Malaysia team from Bintulu were chosen to contribute to one of the most complex and ambitious energy projects ever undertaken—Shell’s Pearl GTL plant in Qatar. Drawing from the expertise and blueprint of the Bintulu plant, these senior technical experts played a key role in the design, commissioning, and startup of the Qatar plant. Today, the Pearl GTL plant is the world's largest producer of GTL products.

“Drawing inspiration from our success with our local engineers at Pearl Qatar and many other projects and assets across Shell, we remain committed to nurturing our homegrown talent and providing them with exciting opportunities to demonstrate their skills,” emphasised Siti.

Also at this event, Shell MDS Malaysia reaffirmed its commitment to community development. This included partnering with Sarawak Metro, the implementer, operator and maintainer of the Kuching Urban Transportation System (KUTS) Project, to trial the Shell GTL Saraphalt, a performance additive, for the test track of the Autonomous Rapid Transit (ART) system. Additionally, Shell MDS Malaysia made a symbolic equipment donation to the Burn Unit at Bintulu Hospital, further demonstrating its support for local healthcare initiatives.

Shell MDS Malaysia produces a range of GTL products comprising the ultra-clean and pure Specialty Chemicals, low toxicity readily biodegradable Drilling based Fluids (GTL Saraline & Sarapar) and Waxes (GTL Sarawax). GTL Sarawax, a premium and high-quality GTL wax named to honour its origin in Sarawak, is a crucial element in various industries, contributing to the production of everyday items like ink toners, candles, crayons, construction, aviation and vehicle parts, food packaging, and cosmetics. With an impressive annual output of 500,000 tonnes of GTL products, Shell MDS Malaysia exports to over 50 countries worldwide for more than 1000 applications.

Abang Johari (fourth from left) officiating Shell MDS Malaysia's 30th anniversary with Shell Malaysia Country Chair, Siti Sulaiman (fifth from left), GM of Shell MDS Malaysia, Amir Bakar (third from left) alongside other dignitaries.
Abang Johari (fourth from left) officiating Shell MDS Malaysia's 30th anniversary with Shell Malaysia Country Chair, Siti Sulaiman (fifth from left), GM of Shell MDS Malaysia, Amir Bakar (third from left) alongside other dignitaries.
Abang Johari (centre) officiating the global launch of Shell GTL Microcrystalline Waxes with Shell Malaysia Country Chair, Siti Sulaiman on his left, GM of Shell MDS Malaysia, Amir Bakar on his right and other dignitaries
Abang Johari (centre) officiating the global launch of Shell GTL Microcrystalline Waxes with Shell Malaysia Country Chair, Siti Sulaiman on his left, GM of Shell MDS Malaysia, Amir Bakar on his right and other dignitaries

Enquiries

Prema Jayabalan
Senior Manager, Media Relations,
Shell Malaysia
Prema.Jayabalan@Shell.com

Cindy Lopez
Country Head of Corporate Relations,
Shell Malaysia
Cindy.Lopez@Shell.com

Cautionary note

The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this announcement, “Shell”, “Shell Group” and “Group” are sometimes used for convenience where references are made to Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this announcement refer to entities over which Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. “Joint ventures” and “joint operations” are collectively referred to as “joint arrangements”. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

Forward-Looking Statements

This announcement contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition”, ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, “milestones”, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, judicial, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak; and (n) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Shell plc’s Form 20-F for the year ended December 31, 2021 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this announcement and should be considered by the reader. Each forward-looking statement speaks only as of the date of this announcement, July 10, 2024. Neither Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this announcement.

Shell’s net carbon footprint

Also, in this announcement we may refer to Shell’s “Net Carbon Footprint” or “Net Carbon Intensity”, which include Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term Shell’s “Net Carbon Footprint” or “Net Carbon Intensity” are for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

Shell’s net-Zero Emissions Target

Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and Net Carbon Footprint (NCF) targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target and 2035 NCF target, as these targets are currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.

Forward Looking Non-GAAP measures

This announcement may contain certain forward-looking non-GAAP measures such as cash capital expenditure and divestments. We are unable to provide a reconciliation of these forward-looking Non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile those Non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of Shell, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Shell plc’s consolidated financial statements.

The contents of websites referred to in this announcement do not form part of this announcement.

We may have used certain terms, such as resources, in this announcement that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.