Kota Kinabalu: Sabah’s gas supply is set to nearly double from 700 million standard cubic feet per day (MMscfd) to 1,350 MMscfd by 2030, driven by seven offshore development projects involving two international and four Malaysian oil companies over the next four years.
The projects, which include the development of four new gas fields, form part of the State’s long-term plan to meet growing energy and industrial demand.
Welcoming the latest development, Chief Minister Datuk Seri Hajiji Noor described it as a testament to the close collaborative relationship between Petronas and the State Government in the continued growth of oil and gas resource development in Sabah.
“The strategy provides a clear delivery plan to secure the gas supply required to support Sabah’s industrialisation ambitions,” he said after witnessing the handover of reports from SMJ Energy (SMJE) and Petronas to State Secretary Datuk Zainudin Aman at Hilton Hotel, Friday.
The Long-Term Gas Supply and Delivery Plan 2025 and the Sabah East Coast Gas Development Plan reports outlined the delivery strategy following studies by the Sabah Gas Strategy Joint Taskforce, a collaboration between State agencies led by SMJE and Petronas.
Based on the reports, demand for the additional gas will be driven by new power plants and Petronas’ third floating liquefied natural gas facility (PFLNG3).
It would also include new manufacturing investments along the West Coast corridor, stretching from Kota Kinabalu Industrial Park (KKIP) through the Sabah Oil and Gas Terminal (SOGT) in Kimanis and the Sabah Oil & Gas Industrial Park (Sogip) in Sipitang and the Labuan gas terminals.
The Sabah East Coast Gas Development Plan, meanwhile, confirmed that the Mutiara cluster of gas fields offshore Sandakan can be developed to supply a new gas-fired power plant at the Sawit Kinabalu Sandakan Industrial Park and to convert Sabah Electricity Sdn Bhd’s Batu Sapi station from diesel to gas-fired turbines.
For the first time, the East Coast would generate its own gas-fired power rather than depend on transmission from the West Coast. The Chief Minister said the strategy would also open the door to gas-based industry in Sandakan and the wider East Coast.
He also acknowledged Petronas for leading the technical work in collaboration with SMJE, Sabah Energy Corporation (SEC), the Energy Commission of Sabah (ECoS) and the Industrial Development, Entrepreneurship and Transport Ministry (Mindet).
Also present were Deputy Chief Minister II cum Finance Minister Datuk Seri Masidi Manjun, who is also SMJ Energy Chairman and SMJE Chief Operating Officer and Executive Vice President Datuk Albert Lo, who is also Co-Chairman of Sub-Committee 1 (SC1) under the Joint Coordination Committee (JCC) established to implement the Commercial Collaboration Agreement (CCA).
