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THE Gabungan Rakyat Sabah (GRS) State Government started the New Year with a bang last week, launching the Sabah Gas Masterplan which marked another important milestone for Sabah after the inking of the Commercial Collaboration Agreement (CCA) in Dec 7 last year.

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 this Sabah Gas Masterplan approved by the State Cabinet last October.

Chief Minister Datuk Seri Hajiji Mohd Noor launched the masterplan at Menara Petronas 2 in Kota Kinabalu on Jan 4, a collaboration between the State Government and Petroliam Nasional Bhd (Petronas) to guide investments in Sabah’s natural gas resources.

“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,” said Hajij.

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.

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.

“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. Petronas Chairman Tan Sri Mohd Bakke Salleh, who was also present, 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 Earlier, Hajiji also officiated the new Menara Petronas 2 Kota Kinabalu, located next to the existing Menara Petronas 1 in Sembulan.

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.

Permanent flood relief centres

On Jan 5, the Chief Minister also announced that the State Government will consider a proposal to build special permanent relief centres (PPS), especially in flood-prone areas. Hajiji said some districts that were often hit by floods faced the problem of lack of PPS to accommodate all the victims.

“If this (special PPS) is the main requirement each time there is a flood, then the government will consider the proposal as there are not enough or no temporary relief centres (in the flood-affected areas),” he said.

He said this after handing out food baskets and RM1,000 in compassionate cash aid to heads of the flood-affected households. He was asked to comment on the suggestion made by some elected representatives in the flood-affected districts on the need to build special PPS as their existing number is insufficient, apart from easing the management of flood victims.

Hajiji also urged all the relevant departments such as the Department of Irrigation and Drainage, Public Works Department and the local authorities in Sabah to make comprehensive plans to reduce the impact and implications of flood disasters in the future by taking into account the aspect of flood mitigation.

“This includes plans to deepen the rivers as well as maintaining the irrigation and drainage infrastructure such as drains that are clogged in each affected district,” he added.

On a related development, Hajiji also asked the management committee of the respective district Disaster Operations Control Centres (PKOB) to assess the damage to basic facilities such as bridges and houses.

Hajiji said the government would also channel RM5,000 in aid to repair the damaged houses, as well as several other financial assistance including for the purchase of basic necessities and to repair damaged vehicles, besides the RM1,000 cash assistance to all heads of household affected by the floods.

“Assistance to victims who suffer damage to their houses will be given after the assessment reports are submitted by the district officer as the chairman of the PKOB committee. The damage assessment is being done,” he added.

The continuous heavy rain since last week has resulted in Pitas, Kota Marudu, Paitan, Telupid, Beluran and Sandakan being hit by floods.