Sabah Gas Master Plan will serve as reference on natural gas development

 By Olivia Miwil - January 4, 2022 @ 2:32pm

Sabah Chief Minister Datuk Seri Hajiji Noor with PETRONAS chairman Tan Sri Mohd Bakke Salleh after the launch of Menara PETRONAS 2 today. - Pic MOHD ADAM ARININ/NSTP
Sabah Chief Minister Datuk Seri Hajiji Noor with PETRONAS chairman Tan Sri Mohd Bakke Salleh after the launch of Menara PETRONAS 2 today. - Pic MOHD ADAM ARININ/NSTP

KOTA KINABALU: The launching of Sabah Gas Master Plan will serve as a reference for the state and Petronas on future development of natural gas.

The masterplan is a testament of the collaborative effort between both parties to sustainably pursue the full potential of the domestic natural gas industry, Sabah Chief Minister Datuk Seri Hajiji Noor said.

He said the state government was working to develop infrastructures to support the oil and gas industry requirements.

"We appreciate Petronas' collaboration with us on the Sabah Gas Master Plan, including in efforts to spur attractive and competitive investment ecosystem for investors.

"My aspiration is for Sabah to stake its rightful claims and chart a path that benefits Sabahans and its future generations.

"We will keep striving for equitable development to ensure that there will be ample opportunity for Sabahans to develop and that they will enjoy tangible benefits from the efforts undertaken," he said during the launch of the Sabah Gas Master Plan at Menara Petronas 2 Kota Kinabalu, here.

Present were Sabah State Secretary Datuk Seri Safar Untong, Petronas Chairman Tan Sri Mohd Bakke Salleh and Petronas President and Group Chief Executive Officer Datuk Tengku Muhammad Taufik.

The Masterplan highlights the construction of a liquefied natural gas (LNG) plant with a capacity of 2.0 million tonnes per annum (MTPA) at the Sipitang Oil and Gas Industrial Park.

The facility will also provide opportunities for Sabah to expand its LNG distribution across the state through activities such as the virtual pipeline system, allowing more industrial and commercial businesses to access and utilise natural gas as a cleaner source of energy.

Secondly, the Sabah state government will be taking up a more prominent role in gas marketing and distribution in Sabah, with 120 Million standard cubic feet per day (MMscfd) volume of gas to be made available for development of key industries in the state.

The natural gas will be supplied from Sabah Oil and Gas Terminal in Kimanis, and Sabah Gas Terminal in Tuaran.

Thirdly, the Master pPlan highlights a suite of petrochemical derivative options for Sabah to attract investors, based on market needs and future outlook, leveraging on locally available feedstock.

Mohd Bakke said Petronas was committed to support Sabah achieve its aspirations with the sustainable development of the state's natural gas industry.

"We believe the Sabah Gas Masterplan which bears strong testimony to this shared vision will help shape the future landscape of Sabah for the mutual prosperity of the State and the nation.

"We look forward to building on the strong relationship with the State Government as a progressive energy and solutions partner to Sabah."

The event today also witnessed the signing of a Heads of Agreement (HOA) between Sabah Energy Corporation Sdn Bhd and Petronas for the supply of 70 MMscfd of natural gas, as well as the document exchange of a previously signed HOA for 50 MMscfd of natural gas supply, for utilisation in Sabah.

Earlier, Hajiji also officiated the new Menara Petronas 2 Kota Kinabalu, located next to the existing Menara Petronas 1 in Sembulan, and toured a gallery featuring a display of Petronas's operations in Sabah.

The 11-storey building, built at the cost of RM190 million, is connected to the existing Menara Petronas 1 by a three-storey link housing a multipurpose hall and centralised meeting rooms.


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