KOTA KINABALU: Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor said Sabah is well on its way to fully adopt the green technology revolution with the RM20 billion green steel project at the Sipitang Oil and Gas Industrial Park (SOGIP).
Witnessing the Heads of Agreement handing over ceremony from Sabah Energy
Corporation Sdn Bhd (SEC) to Esteel Enterprise Sabah Sdn Bhd (Esteel Sabah) for the
supply of 150 million standard cubic feet per day (mmscfd) of natural gas at Menara
Kinabalu today, he said, “The state welcome investments in products that harness renewable energy, improve waste management, and promote sustainable solutions. Investing in green technology- based products not only aligns with global sustainability goals but also taps into a rapidly growing market for eco-friendly solutions,” he said.
Hajiji reiterated the point he raised at the Global Chinese Economic and Technology
Summit (GCET) in Shenzen, China, last November that Sabah has identified a few key
industry areas that not only promise substantial returns on investment but also contribute
to a more sustainable and prosperous future.
“This marked Sabah’s confidence in the green steel project, which is among investments
that represented the foundation of the state’s economic growth and development strategy.“
Under the agreement, SEC will supply 100 million standard cubic feet per day (mmscfd)
of natural gas to Esteel Sabah’s steel manufacturing plant and an additional 50 mmscfd
for the plant’s power generation over the next 20 years.
SEC’s significant contribution to this project highlights its crucial role in promoting sustainable initiatives and fostering regional development, he added.
The Green Steel Project is a three-phase project which opted for natural gas as a reducing agent instead of coke and coal, reducing carbon emissions by 70 per cent and making it low carbon, efficient, and environmentally friendly.
Esteel Enterprise Sabah Sdn Bhd, a subsidiary of Singapore’s Green Esteel Pte Ltd, had signed the land-lease agreement with the Sabah Oil and Gas Development Corporation Sdn Bhd (SOGDC) to set up the manufacturing plant at SOGIP in Sipitang in November 2022.
Phase One of the project, with an estimated cost of USD1.93 billion, is expected to
commence this year and completed by 2026.
This project is anticipated to create approximately 2,795 job opportunities during its
operational phase.
Representing SEC at the Heads of Agreement handover ceremony was its Chief Executive Officer, Datuk Adzmir Abd Rahman, while Esteel Sabah was represented by Managing Director Xu Yihang.
Also present were Minister of Industrial Development and Entrepreneurship Datuk Phoong Jin Zhe, SEC Chairman Datuk Annuar Ayub, State Secretary Datuk Seri Panglima Sr Safar Untong, and Chief Executive Officer, SOGDC Sdn Bhd, Datuk Harun Ismail.-pr/BNN
