Sabah and PETRONAS Launch Sabah Gas Masterplan

Kota Kinabalu, 4 January 2022 – The Sabah State Government and PETRONAS today launched the Sabah Gas Masterplan that serves as a reference for both parties in guiding the way forward for the further development of natural gas in the State.

The Masterplan, which is the result of a joint study between the Sabah State Government and PETRONAS, is a testament of the collaborative effort between both parties to sustainably pursue the full potential of the domestic natural gas industry. 

Sabah Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor officiated the launch of the Sabah Gas Masterplan at Menara PETRONAS 2 Kota Kinabalu, here, accompanied by Sabah State Secretary Datuk Seri Panglima Sr Haji Safar Untong, as well as PETRONAS Chairman Tan Sri Mohd Bakke Salleh and PETRONAS President and Group Chief Executive Officer Datuk Tengku Muhammad Taufik.

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 Masterplan, including in efforts to spur an attractive and competitive investment ecosystem for investors.” 

The Chief Minister stressed, “My aspiration is for Sabah to stake its rightful claims and chart a path that benefits Sabahans and its future generations. We will keep striving for equitable development to ensure that there will be ample opportunity for Sabahans to develop and that they will enjoy tangible benefits from the efforts undertaken.”

PETRONAS Chairman Tan Sri Mohd Bakke Salleh said: “In our duty as a trustee of the nation’s hydrocarbon resources, PETRONAS is committed to support Sabah achieve its aspirations with the sustainable development of the State’s natural gas industry. We believe the Sabah Gas Masterplan 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 Masterplan highlights three distinct investment opportunities for Sabah’s natural gas resources, the first being the construction of a liquefied natural gas (LNG) plant with a capacity of 2.0 million tonnes per annum (MTPA) at the Sipitang Oil and Gas Industrial Park.

The LNG facility will also provide opportunities for Sabah to expand its LNG distribution across the state through activities such as the virtual pipeline system, allowing more industrial and commercial businesses to access and utilise natural gas as a cleaner source of energy.

Secondly, the Sabah State Government will be taking up a more prominent role in gas marketing and distribution in Sabah, with 120 MMscfd volume of gas to be made available for development of key industries in the state. The natural gas will be supplied from Sabah Oil and Gas Terminal in Kimanis, and Sabah Gas Terminal in Tuaran.

To signify the progress towards this intent, the event today also witnessed the signing of a Heads of Agreement (HOA) between Sabah Energy Corporation Sdn Bhd and PETRONAS for the supply of 70 MMscfd of natural gas, as well as the document exchange of a previously signed HOA for 50 MMscfd of natural gas supply, for utilisation in Sabah. 

Thirdly, the Masterplan highlights a suite of petrochemical derivative options for Sabah to attract investors, based on market needs and future outlook, leveraging on locally available feedstock.