KOTA KINABALU – At long last, the Sabah Gas Master Plan was launched today with the aim of charting investment options and monetisation of the state’s natural gas resources.
In a joint statement, national oil and gas company Petronas and the state government said that the master plan will serve as a reference point for both parties on the way forward for natural gas development in the state.
It cited three distinct investment opportunities involving natural gas resources.
The first is the construction of a liquefied natural gas (LNG) plant, with the capacity of producing 2.0 million tonnes per annum, at the Sipitang Oil and Gas Industrial Park.
“The LNG facility will provide opportunities for Sabah to expand its LNG distribution across Sabah via activities like virtual pipeline systems,” said the statement.
“This would allow more industries and commercial businesses to access and use natural gas as a cleaner source of energy.”
The second opportunity involves the state government allowing 120 million standard cubic feet per day in volume of gas for the purpose of marketing of local key industries.
This gas will be supplied from the Sabah Oil and Gas Terminal in Kimanis and the Sabah Gas Terminal in Tuaran for the purpose of marketing and distribution.
Of the amount, 70 million standard cubic feet per day of natural gas supply will be made possible due to the signing of a heads of agreement (HoA) inked during the launching of the master plan today.
The other 50 million standard cubic feet per day will come from another HoA signed by the two parties previously.
The third opportunity is in the form of a set of petrochemical derivative options for Sabah to woo investors, based on market needs and future outlooks, leveraging on locally available feedstock.
Speaking at the launch, Sabah Chief Minister Datuk Seri Hajiji Noor reiterated the state’s aspiration to make its rightful claim and build a future that benefits her people and future generations.
“We (the state government) will keep striving for equitable development to ensure that there will be ample opportunity for Sabahans to enjoy tangible benefits from the efforts undertaken.”
Hajiji did not elaborate on what Sabah’s rightful claim was, but he could be referring to the stake in natural resources, including oil and gas.
Petronas chairman Tan Sri Mohd Bakke Salleh said that the oil firm is committed to supporting Sabah in achieving its aspirations with the sustainable development of the state’s natural gas industry.
“We believe the Sabah Gas Master Plan bears strong testimony to this shared vision and would help shape the future landscape of Sabah and mutual prosperity.
“We look forward to building a strong relationship with the Sabah government as a progressive energy and solutions partner to the state," he said.
Sabah contributes to 13% of Malaysia’s natural gas production, with Sarawak being the largest at 61%, while 26% comes from Peninsular Malaysia.
Earlier, Hajiji toured the newly completed 11-storey Menara Petronas 2 in Sembulan here, which was built at the cost of RM190 million. – The Vibes, January 4, 2021
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