Business

Sabah launches RM8.88 billion energy hub  

Chief Minister Datuk Seri Hajiji Noor said the project will support economic expansion and drive investments in oil, gas, and energy industries.

Updated 1 year ago · Published on 11 Feb 2025 2:22PM

Sabah launches RM8.88 billion energy hub  
Hajiji signing the ceremonial plaque during the opening ceremony. - Pic courtesy of CM's department, The Vibes, February 11, 2025

by Jason Santos

AN RM8.88 billion (USD2 billion) Oil and Gas, Energy Hub Project has been launched at the Sipitang Oil and Gas Industrial Park (SOGIP) to strengthen Malaysia’s energy sector and create job opportunities.

Chief Minister Datuk Seri Hajiji Noor said the project will support economic expansion and drive investments in oil, gas, and energy industries.

“SOGIP will be a catalyst for industrial growth, creating opportunities for collaboration, innovation, and jobs,” he said during the launch at the Sabah International Convention Centre on Tuesday. 

The project, developed by Sabah Oil and Gas Development Corporation (SOGDC) and UK-based Gibson Shipbrokers Limited, will be built in two phases, featuring a port to support energy-related activities.

Hajiji said environmental sustainability is a key focus, with the hub integrating LNG and cleaner energy solutions to support Malaysia’s transition to renewables.

“The energy storage and distribution systems will reduce reliance on fossil fuels and facilitate greater use of solar and wind power,” he said.

The initiative is expected to generate employment and skills training opportunities for locals, with 80% of the workforce to be sourced from Sabah.

Hajiji reaffirmed the state’s commitment to local employment, highlighting the Sabah Local Content Council’s role in developing workforce capacity in the oil and gas sector.

“With strong support from both the government and private sector, SOGIP is expected to drive industrial growth and economic development,” he said. – February 11, 2025

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