PETALING JAYA: Petronas clarified yesterday that the decommissioning of the RM4.6 billion Sabah-Sarawak Gas Pipeline will affect only the section passing through Lawas, Limbang, Miri and Bintulu.
The national oil and gas company said the decision was made after a review of the section’s viability, given the worsening environmental factors impacting the integrity and safety of the surrounding area.
AdvertisementIt said the remaining sections will continue to operate normally, with no impact on the company’s energy supply contractual obligations.
“Petronas remains committed to investing in Sabah and Sarawak through the development of value-adding oil and gas and energy-related projects in both states,” it said in a statement yesterday.
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In its activity outlook report last Tuesday, Petronas said it planned to decommission the pipeline over the next three years. Earlier reports tied this to safety and operational challenges.
Advertisement (adsbygoogle = window.adsbygoogle || []).push({});The state energy firm said these plans include the plugging and abandonment of 153 wells and the abandonment of 37 offshore facilities.
Some quarters have questioned the move, including former works minister Baru Bian who said that this could incur additional costs and affect the livelihood of local communities.