KOTA KINABALU: The State Cabinet has endorsed Sabah’s first and largest near shore liquefied natural gas (LNG) facility to be built by Petronas at the Sipitang Oil
and Gas Industrial Park (SOGIP).
Announcing this here today following a courtesy call by Dato’ Lokman Hakim Ali,
Secretary-General of the Ministry of International Trade and Industry (MITI), Chief
Minister Datuk Seri Panglima Haji Hajiji Haji Noor said the LNG project, subject to
Final Investment Decision (FID) in 2022 is a step in the right direction as the
Government continues to pursue more deals to get additional revenue via equity
participation for Sabah.
“The nearshore LNG project is an outcome of a joint study between the State
Government and Petronas to identify optimal gas monetisation options in order to
maximise long-term economic spin-offs that will benefit the people of Sabah,” he
added.
The Chief Minister assured that the GRS State Government will be looking at many
more options to ensure the people of Sabah reap the benefits from the state’s oil and
gas sector.
The new LNG plant is expected to increase the total LNG production from 2.7 to 4.7
million tonnes per annum (MTPA), adding another 2 million MTPA of LNG production
capacity.
Once operational, the LNG plant will further strengthen the local ecosystem of talent
and companies with niche skills to carry out operations and support services.
The nearshore LNG plant would be developed at SOGIP where feed gas will be supplied from Sabah’s gas fields via the existing Sabah Sarawak Gas Pipeline
(SSGP).
The plant will be moored at Petronas Chemicals Fertiliser Sabah’ s new jetty extension
and supported by selected utilities and facilities from onshore.
With its relocatable capabilities, the nearshore LNG plant provides continuous asset
utilisation and optimises investment.
The Front End Engineering Design (FEED) activity for the project will start in late
October 2021 and subject to FID, the nearshore LNG plant is planned to be Ready for
Start-Up by the end of 2026.-pr/BNN
