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January 5, 2022

Malaysian state Sabah and Petronas launch gas development plan

As part of the plan, Petronas will build the 2MTPA LNG plant at the Sipitang oil and gas industrial park.

Malaysian oil and gas firm Petronas and the state government of Sabah have launched a plan to develop the natural gas resources in the Malaysian state.

The Sabah gas plan was developed following a joint study between the state government and Petronas. It outlines three investment opportunities, with the first being the construction of a 2.0 million tonnes per annum (MTPA) LNG plant at the Sipitang oil and gas industrial park.

The LNG facility is expected to provide opportunities to expand LNG distribution across Sabah.

The Sabah State Government will undertake a key role in gas marketing and distribution, with an aim to make 120MMscfd of gas available for the development of key industries.

The gas is will be supplied by the Sabah oil and gas terminal in Kimanis, and the Sabah gas terminal in Tuaran.

The third investment opportunity is a suite of petrochemical derivative options. This would allow Sabah to attract investors, depending on market requirements.

Sabah Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor said: “The State Government is continuing to develop the infrastructure related to the oil and gas requirements.

“We appreciate PETRONAS’ collaboration with us on the Sabah gas master plan, including efforts to spur an attractive and competitive investment ecosystem for investors.”

Petronas chairman Tan Sri Mohd Bakke Salleh said: “We believe the Sabah gas master plan, which bears strong testimony to this shared vision, will help shape the future landscape of Sabah for the mutual prosperity of the State and the nation. We look forward to building on the strong relationship with the State Government as a progressive energy and solutions partner to Sabah.”

The Sabah state government company Sabah Energy has signed agreements with Petronas for the supply of 70 MMscfd of natural gas.

Last month, the Sabah State Government and Petronas signed a commercial collaboration agreement to realise the full potential of the state’s oil and gas industry.

In the same month, Petronas awarded six offshore blocks under the Malaysia Bid Round (MBR) 2021 to explore and monetise hydrocarbon resource potentials in the country.

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