Sabah Gas Masterplan launched
Published on: Wednesday, January 05, 2022
.jpg "Sabah Gas Masterplan launched")
Hajiji (centre) witnessing presentation of Sabah Gas Masterplan book by Mazuin (second right) to Safar while Local Government and Housing cum State Finance Minister II Datuk Seri Masidi Manjun (left) and Petronas Chairman Tan Sri Mohd Bakke Salleh look on.
Kota Kinabalu: 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 (Sogip) is among three investments under the Sabah Gas Masterplan approved by the State Cabinet last October.Chief Minister Datuk Seri Hajiji Mohd Noor launched the masterplan, Tuesday, a collaboration between the State Government and Petroliam Nasional Bhd (Petronas) to guide investments in Sabah’s natural gas resources.
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Speaking at the occasion in Menara Petronas 2, Tuesday, Hajiji said it marked another important milestone for Sabah after the inking of the Commercial Collaboration Agreement (CCA) on Dec. 7, last year.
“The LNG facility, the first in the state, will 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 use natural gas as a cleaner source of energy.
“Secondly, the State Government will be taking up a more prominent role in gas marketing and distribution in Sabah with 120 MMscfd volume of gas to be made available for the development of key industries in the State.
“The natural gas will be supplied from the Sabah Oil and Gas Terminal in Kimanis, and Sabah Gas Terminal in Tuaran,” Hajiji said.
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Signifying the progress of this intent, a Heads of Agreement (HOA) was signed 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 use in Sabah.
Sabah Energy Corporation Sdn Bhd (SEC) Chief Executive Officer Datuk Harun Ismail and his deputy Adzmir Abdul Rahman signed the HOA for the supply of gas while Petronas was represented by its Malaysia Petroleum Management Senior Vice President Ir. Mohamed Firouz Asnan and its Malaysia Petroleum Malaysia Head of Integrated Hydrocarbon Management Dr Aidid Chee Tahir.
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Thirdly, the masterplan highlights a suite of petrochemical derivative options for Sabah to attract investors, based on market needs and future outlook, leveraging on locally available feedstock.
Hajiji said several proposals have also been recommended to the masterplan that included more natural gas exploration activities to ensure sustainable supply, a comprehensive development plan for Sabah must be formulated to create more value-adding industry in Sabah including petrochemical downstream development. Sogip must be made Sabah’s future prime oil and gas downstream investment site but there is still work to be done to make it more appealing to investors, he said.
Another proposal was the need to evaluate ready local talents and to improve them to meet the needs of the oil and gas, manufacturing and construction industries.
“A State entity must be identified to monitor the implementation of the Sabah Gas Masterplan’s recommendations,” he said.
As a result of the joint research undertaken by the State Government and Petronas into the oil and gas industry to get a long-term economic return for Sabah and its people, Hajiji said the Sabah Gas Masterplan was endorsed by the State Cabinet in October, last year.
“It is a testament of the collaborative effort between both parties to sustainably pursue the full potential of the domestic natural gas industry,” he said.
“We appreciate Petronas’ collaboration with us on the Sabah Gas Masterplan, including in efforts to spur an 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,” Hajiji said.
Meanwhile, Petronas Chairman Tan Sri Mohd Bakke Salleh said Petronas duty as a trustee of the nation’s hydrocarbon resources, is committed to support Sabah achieve its aspirations with the sustainable development of the State’s natural gas industry.
The Sabah Gas Masterplan bears strong testimony to this shared vision and 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,” he said.
Petronas Senior Vice-President Corporate Strategy Mazuin Ismail presented the Sabah Gas Master Plan to State Secretary Datuk Seri Sr Safar Untong.
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 costing 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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