Kota Kinabalu: Sabah Energy Corporation Sdn Bhd (SEC) sealed another milestone agreement with Petronas to enable the State Government-linked company to supply 150 million standard cubic feet per day (MMscfd) of natural gas – 100 MMscfd for manufacturing and 50 MMscfd for power generation – valued at approximately RM1 billion annually to Esteel Enterprise Sabah Sdn Bhd.
“This agreement marks a significant step towards Sabah’s long-term development goals, promoting industrial growth and energy security and creating new opportunities to drive Sabah’s progress.
Advertisement (adsbygoogle = window.adsbygoogle || []).push({});“We look forward to further collaboration with Petronas taking into account the best interest of Sabah,” said Chief Minister Datuk Seri Haji Hajiji Haji Noor after witnessing the exchange of agreements between SEC and Petronas and SEC and Esteel at Menara Kinabalu, Friday. Masidi (left), who represented the Chief Minister, doing the launch gimmick of Project Neptune.
In the agreement between SEC and Petronas, the national petroleum company would supply an additional 104 MMscfd of natural gas to SEC to support Sabah’s industrial and energy needs.
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Representing Petronas was Senior General Manager of Malaysia Petroleum Management’s (MPM) Integrated Hydrocarbon Management, Anuar Ismail, while Chief Executive Officer Datuk Adzmir Abdul Rahman, represented SEC.
Advertisement (adsbygoogle = window.adsbygoogle || []).push({});Commenting on the agreement, MPM Senior Vice President Datuk Ir. Bacho Pilong said it underscored Petronas’ unwavering commitment to providing reliable energy solutions that contribute to Sabah’s growth while supporting more sustainable energy use.
Committed to best industrial practices, SEC maintains a 98 per cent gas delivery efficiency uptime and continuously enhances its technical capabilities and operational efficiencies to drive growth in the energy sector.
Advertisement (adsbygoogle = window.adsbygoogle || []).push({});Expected to be operational by the fourth quarter of 2027 on a 180-hectare site, Phase 1 of Esteel’s green steel plant with an investment of USD1.93 billion (RM8.92 billion), would create 2,795 direct job opportunities and produce 2.5 million tonnes of cleaner Hot Briquetted Iron (HBI).
The three-phased project brings in an estimated US$4.39 billion (RM19.6 billion) investment.
The plant 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.
Hajiji said 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.