The collaboration between the Sabah government and Petronas launched the Sabah Gas Masterplan focusing on three main aspects to encourage natural gas investment in the state.
Sabah’s Chief Minister Datuk Hajiji Noor says, “The first aspect entails the construction of a 2.0 million tonnes per annum (MTPA) liquefied natural gas (LNG) plant at the Sipitang Oil and Gas Industrial Park (SOGIP).
“The LNG facility would allow the state to expand LNG distribution, including virtual pipeline systems that would allow more industrial and commercial businesses to access and use natural gas as a cleaner energy source.,” he says.
The second aspect, according to Hajiji, with 120 MMscfd (million standard cubic feet per day) gas supply provided for the development of key industries in Sabah, the state government will take a more prominent role in leading marketing and distribution activities in the state.
The third aspect emphasises a set of petrochemical derivatives of choice for Sabah to attract investors based on market needs and future prospects, namely the use of local raw materials.
During the launch of the Sabah Gas Masterplan, Hajiji simultaneously inks the Gas Supply Heads of Agreement (HOA), and Menara Petronas 2 here today.
“The natural gas is supplied from the Sabah Oil and Gas Terminal in Kimanis and the Tuaran Gas Terminal through the signing of an HOA between Sabah Energy Corporation Sdn Bhd (SEC) and Petronas to supply 70 MMscfd of natural gas and the exchange of HOA documents for 50 MMscfd of natural gas supply for use in Sabah,” Hajiji says.
The HOA was inked by Petronas senior vice-president of Malaysia Petroleum Management Mohamed Firouz Asnan on behalf of Petronas, while the SEC was represented by its chief executive officer, Datuk Harun Ismail.
Petronas Chairman Tan Sri Mohd Bakke Salleh, expressed optimism that the master plan will usher in a new era of cooperation between Sabah and Petronas, allowing the state to become more competitive and prosperous.
“We hope that these downstream investments will open up synergistic opportunities with other sectors such as agriculture and manufacturing, as well as strengthen the economic viability of Sabah,” he says.
