Sabah launches plan to draw oil and gas investments


KOTA KINABALU: Sabah has crafted a gas masterplan, which is predicted to assist convey in additional oil and gas investments to the state.

The masterplan, endorsed by the state Cabinet final October, highlights three distinct funding alternatives for Sabah’s pure gas sources with the primary being the development of a liquefied pure gas (LNG) plant with a capability of two million tonnes each year on the Sipitang Oil and Gas Industrial Park.

Chief Minister Datuk Seri Hajiji Noor stated the LNG facility, which might be the primary within the state, will present alternatives for Sabah to increase its LNG distribution throughout the state via actions reminiscent of a digital pipeline system.

It would enable extra industrial and business companies to utilise pure gas as a cleaner supply of vitality, he stated through the launch of the masterplan on the new Menara Petronas 2 constructing right here yesterday.

He added that the state authorities may also be taking on a extra outstanding function in gas advertising and marketing and distribution in Sabah, with 120 million normal cubic ft per day (MMscfd) of gas to be made accessible for the event of key industries within the state.

He stated pure gas might be equipped from the Sabah Oil and Gas Terminal in Kimanis and the Sabah Gas Terminal in Tuaran.

Signifying the progress of this intent, a Heads of Agreement (HOA) was signed between Sabah Energy Corporation Sdn Bhd and Petronas for the availability of 70 MMscfd of pure gas.

A doc change of a beforehand signed HOA for 50 MMscfd of pure gas provide for utilisation in Sabah was additionally witnessed by the Chief Minister.

Apart from that, Hajiji stated the masterplan highlights a set of petrochemical spinoff choices for Sabah to entice buyers, primarily based on market wants and future outlook, and leveraging on regionally accessible feedstock.

He stated a number of proposals have additionally been really helpful for the masterplan that features extra pure gas exploration actions to guarantee sustainable provide.

He additionally stated a complete improvement plan for Sabah should be formulated to create extra value-added industries, together with petrochemical downstream improvement.

The Sipitang Oil and Gas Industrial Park should be made Sabah’s future prime oil and gas downstream funding web site, however there’s nonetheless work to be performed to make it extra interesting to buyers, Hajiji stated.

Another proposal was on the necessity to consider available native expertise and to enhance them to meet the wants of the oil and gas, manufacturing and building industries, he added.

“A state entity must be identified to monitor the implementation of the Sabah gas masterplan’s recommendations,” he stated.

“These developments are testament to the collaborative effort between Petronas and the state government to sustainably pursue the full potential of the domestic natural gas industry,” he added.

“We appreciate Petronas’ collaboration with us on the masterplan, including efforts to spur an attractive and competitive investment ecosystem for investors.

“My aspiration is for Sabah to stake its rightful claim and chart a path that benefits Sabahans and future generations,” he stated.

Earlier, Petronas chairman Tan Sri Mohd Bakke Salleh stated it’s the firm’s responsibility as a trustee of the nation’s hydrocarbon sources to help Sabah’s aspirations to develop its pure gas business in a sustainable method.

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