Sabah’s first LNG facility
KOTA KINABALU: The State Cabinet has endorsed Sabah’s first and largest nearshore liquefied natural gas (LNG) facility to be built by Petronas at the Sipitang Oil & Gas Industrial Park (SOGIP).
Announcing this here on Tuesday following a courtesy call by Dato’ Lokman Hakim Ali, Secretary-General of the Ministry of International Trade and Industry (MITI), Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor said the LNG project, subject to Final Investment Decision (FID) in 2022 is a step in the right direction as the Government continues to pursue more deals to get additional revenue via equity participation for Sabah.
“The nearshore LNG project is an outcome of a joint study between the State Government and Petronas to identify optimal gas monetisation options in order to maximise long-term economic spin-offs that will benefit the people of Sabah,” he added.
The Chief Minister assured that the GRS State Government will be looking at many more options to ensure the people of Sabah reap the benefits from the state’s oil and gas sector.
The new LNG plant is expected to increase the total LNG production from 2.7 to 4.7 million tonnes per annum (MTPA), adding another two million MTPA of LNG production capacity.
Once operational, the LNG plant will further strengthen the local ecosystem of talent and companies with niche skills to carry out operations and support services.
The nearshore LNG plant would be developed at SOGIP where feed gas will be supplied from Sabah’s gas fields via the existing Sabah Sarawak Gas Pipeline (SSGP).
The plant will be moored at Petronas Chemicals Fertiliser Sabah’s new je y extension and supported by selected utilities and facilities from onshore.
With its relocatable capabilities, the nearshore LNG plant provides continuous asset utilisation and optimises investment.
The Front End Engineering Design (FEED) activity for the project will start in late October 2021 and subject to FID, the nearshore LNG plant is planned to be Ready for Start-Up by the end of 2026.
The nearshore LNG project is an outcome of a joint study between the State Government and Petronas to identify optimal gas monetisation options in order to maximise long-term economic spinoffs that will benefit the people of Sabah.
Datuk Seri Panglima Haji Hajiji Haji Noor