SIPITANG : Sabah Oil & Gas Development Corporation Sdn Bhd (SOGDC) today announced the signing of a Land Sublease Agreement with PFLNG 3 Sdn Bhd, a subsidiary of Petroliam Nasional Berhad (PETRONAS), during a formal ceremony at the Sipitang Oil & Gas Industrial Park (SOGIP). The agreement involves leasing land parcels within SOGIP Sabah to facilitate PETRONAS’s development of its third Floating Liquefied Natural Gas (FLNG) facility.
The event was attended by YB Datuk Phoong Jin Zhe, Sabah Minister of Industrial Development and Entrepreneurship, who served as the Guest of Honour.
This marks PETRONAS’s second project at SOGIP, following the successful establishment of an integrated ammonia and urea production complex. The ceremony included a memento exchange, group photo session, and a site visit by participating delegates to observe the ongoing developments.
In his speech, SOGDC Managing Director and CEO Datuk Harun Bin Ismail highlighted the significance of the project, stating, “This agreement marks another important milestone in positioning SOGIP as a leading oil and gas hub in the region, while significantly contributing to Sabah’s economic growth. Projects like this are expected to have a multiplier effect, enabling economic development and fostering local talent and contractors in Sabah.”
The shore-based FLNG facility is designed to produce up to 2 million tonnes per annum (MTPA) of LNG and is targeted to commence commercial operations in the second half of 2027.
SOGDC reiterated its commitment to strengthening Sabah’s oil and gas industry, creating economic opportunities, and generating employment for the local community.-pr/BNN
