WARISAN president Datuk Seri Panglima Mohd Shafie Apdal has expressed concern over the federal government’s decision to scrap the RM4 billion Trans-Sabah Gas Pipeline (TSGP) project, questioning the future of Sabah’s energy security following the cancellation.
“I am deeply concerned by the federal government’s decision to once again scrap the RM4 billion Trans-Sabah Gas Pipeline (TSGP) project,” Shafie said in a statement in Kota Kinabalu on Friday.
The pipeline was meant to “deliver gas from Kimanis to Sandakan and Tawau, securing Sabah’s energy future, creating jobs, and ensuring we benefit from our own natural resources.”
Shafie said the repeated delays and controversies surrounding the project, stating, “After years of delays, controversies, and now another cancellation, Sabahans are left wondering what has happened to the money.”
Economic Affairs Minister Rafizi Ramli announced on Tuesday that the federal government had decided to cancel the TSGP project due to unresolved financial and operational issues.
“After the change of government in May 2018, it was revealed that 88% of the project’s funds had already been paid out, despite only 13% of the work being completed,” Shafie said, questioning, “Where did the money go? Who authorised the payments, and was corruption involved?”
Shafie demanded transparency from the federal government, asking, “How was the RM4 billion spent, and what remains of it? Who were the key players responsible for managing these funds? Which companies, contractors, and agencies were involved in the project?”
He also questioned the sincerity of promises made by the Gabungan Rakyat Sabah (GRS) government, stating, “The Hajiji-led GRS government frequently announces such projects that claim to generate job opportunities and stimulate economic growth but the reality on the ground tells a different story.”
Shafie further expressed concerns about the new RM8.88 billion Oil and Gas Energy Hub Project at Sipitang Oil and Gas Industrial Park, asking, “Will this project truly benefit Sabahans, or is it just another grand announcement that will fail to materialise?”
With the TSGP project now scrapped, Shafie urged the federal government to clarify its alternative plan to meet Sabah’s energy needs.
“What is the government’s plan to resolve the purpose of the pipeline, which was supposed to improve Sabah’s energy future?” he asked.
“Sabah deserves real development, not another cycle of empty promises. There must be truth, accountability, and justice for our state,” Shafie said.
The RM4.06 billion TSGP project was initiated in 2016 under the Barisan Nasional government. It involved laying 662km of gas pipelines from the Sabah oil and gas terminal in Kimanis on the state’s west coast to the east coast districts of Sandakan and Tawau.
Following the change of government in Putrajaya in May 2018, it was revealed that 88% of the project value of TSGP and another project called the Multi-Product Pipeline had been paid out despite only 13% of the work being completed.
Both projects were then cancelled, with the government citing its fiscal position.
In February 2021, the Muhyiddin Yassin administration decided to revive the TSGP, with further negotiations carried out with the original company awarded the project to decide on the direction of the pipeline.
But in 2022, Hajiji, who also occupies the portfolio of state finance minister, also proposed the 135-MW New East Gas project to be discontinued if the tariff is not competitive.
Instead, he requested for the Southern Link Distribution project to be done in one package,and not in phases, via direct funding under the 12th Malaysia Plan by 2027.
“The state government also proposed that the federal government discontinue the Trans-Sabah Gas Pipeline because of no gas supply, and instead the contractor that has been paid for the project (has been asked) to do the Southern Link project,” he said. - February 21, 2025
