Kota Kinabalu: Warisan Vice President Datuk Junz Wong said Sabah to anchor its downstream energy ambitions within the State, pointing to the Sipitang Oil and Gas Industrial Park (Sogip) as the most strategic and ready platform for a future oil refinery, rather than Labuan.
He said Sabah already possesses the core infrastructure and ecosystem needed to support such a development, including an established industrial base, gas linkages and phased port facilities - making Sogip a natural choice for expansion.
“Sabah is not starting from zero. We already have Sogip – a purpose-built oil and gas industrial hub with the capacity to support large-scale downstream development,” he said.
The Tanjung Aru Assemblyman noted that plans announced in February 2025 include a proposed refinery in Sogip with a capacity of up to 150,000 barrels per day, alongside storage facilities capable of holding up to three million cubic metres of crude oil and refined petroleum products.
Located about 12km from Sipitang town and about 150km from Kota Kinabalu, Sogip spans over 5,500 acres and is Sabah’s first designated oil and gas and heavy industries industrial park, strategically positioned along the deep waters of Brunei Bay.
Against the backdrop of the ongoing global energy crisis – intensified by geopolitical tensions involving Iran – Wong said the situation has exposed Malaysia’s overreliance on oil and gas infrastructure located far from Sabah, despite the State being a major contributor to national energy production.
He said although former Chief Minister Tan Sri Harris Mohd Salleh requested the refinery be in Labuan, Sabah itself offers a more compelling and strategic alternative.
“While we recognise the logic behind proposals for Labuan, Sabah itself is fully capable of hosting such a development. The priority must be to ensure Sabah captures the full economic value of its resources.
“It’s not about location — it’s about Sabah getting its fair share,” he said.
Wong emphasised that any refinery initiative must be commercially viable, transparently planned, and deliver tangible benefits to Sabahans, including job creation, industrial growth, and stronger participation in the downstream value chain.
“For decades, Sabah has powered the nation – yet we remain largely excluded from the value-added segment. This must change if we are serious about fairness and long-term resilience.”
He urged the Federal Government to move beyond rhetoric and undertake a transparent feasibility study, with full engagement of the Sabah State Government and industry stakeholders.
“The question is no longer whether Sabah deserves downstream capacity - but whether there is the political will to realise it within Sabah itself,” he said.
