KOTA KINABALU – Sabah Oil and Gas Development Corporation Sdn Bhd (SOGDC) has inked a RM8.8 billion deal with Petroliam Nasional Bhd (Petronas) to build the state’s first and largest near-shore floating liquefied natural gas (LNG) facility.
Known as the ZLNG project at the Sipitang Oil and Gas Industrial Park (Sogip), it is currently in the front-end engineering and design stage and targeted to complete the final investment decision by year end.
The floating LNG facility will create multiple spin-offs for the state, such as potential businesses such as tank regional distribution and bunkering, as well as expand the LNG Virtual Pipeline System (VPS) in Sabah.
LNG VPS, which leverages the LNG plant, will enable Sabah to extend domestic gas use, especially in the east coast region.
Based on the engagement with the local contractors in Sabah recently, they are keen to support SOGDC as the anchor for developing the local Sabahan contractors for projects within Sogip to not only grow but to safeguard its interest while providing services and solutions to its clients.
The memorandum of understanding will include SOGDC’s support and commitment to assist Petronas in securing all necessary approvals, permits, and/or utilities as Sogip developer.
The signing ceremony was held at Le Meridien Kota Kinabalu yesterday subsequent to the adjournment of the 4th joint technical meeting of the ZLNG project.
It was attended by Deputy Chief Minister Datuk Joachim Gunsalam. – The Vibes, April 23, 2022
