KOTA KINABALU – National petroleum giant Petronas will be constructing the largest near-shore liquified natural gas (LNG) facility in Sabah at the Sipitang Oil and Gas Industrial Park.
The new plant will increase natural gas output from 2.7 million metric tonnes (MT) to 4.7 million MT, when operational.
The offshore plant will be channelled through the Sabah-Sarawak Gas Pipeline, connected to a new jetty at Petronas Chemicals Fertiliser Sabah, and is to be supported by selected utilities and amenities onshore.
The state cabinet – in confirming the new project – noted that it will commence by the end of the month, subject to the final investment decision.
Sabah Chief Minister Datuk Seri Hajiji Mohd Noor said work on the offshore plant will be ready for operations by the end of 2026.
“The matter was announced following the visit of International Trade and Industry Ministry secretary-general Datuk Lokman Hakim Ali,” he said in a statement today.
Hajiji added that the final investment decision scheduled for 2022 will be a step on the right track in the Sabah government’s effort to increase additional revenue and equity participation for the state.
“The offshore LNG project is the result of a joint study conducted by the state government and Petronas to maximise gas exploration, which would be beneficial for the economy and the people of Sabah in the long run,” he said. – The Vibes, October 26, 2021
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