KOTA KINABALU: Sabah will build the first and largest near-shore floating liquefied natural gas (LNG) facility, with an estimated value of RM8.8 billion.
The project is made possible after Petroliam Nasional Berhad (Petronas) and Sabah Oil & Gas Development Corporation Sdn Bhd (SOGDC) signed a memorandum of understanding (MOU) known as ZLNG project at Sipitang Oil and Gas Industrial Park (SOGIP).
The signing also further strengthened the existing collaboration between Petronas and SOGDC towards materialising the project which is currently under the Front-End Engineering and Design (FEED) stage and targeted to complete its Final Investment Decision (FID) end of this year.
Petronas and SOGDC will collaborate and cooperate in realisation of the project that includes SOGDC's support and commitment to assist Petronas in securing all necessary approvals, permits and utilities as SOGIP developer.
The signing ceremony was held at a hotel here, subsequent to the adjournment of the 4th Joint Technical Meeting of the ZLNG project.
It was attended by Sabah Deputy Chief Minister and Industrial Development Minister, Datuk Dr Joachim Gunsalam.
LNG Assets Gas Business vice president Abang Yusuf Abang Puteh signed on behalf of Petronas, while Industrial Development Ministry permanent secretary and SOGDC director Thomas Logijin signed on behalf of SOGDC.
It was witnessed by SOGDC managing director and chief executive officer Abdul Kadir Abdullah.
The floating LNG facility will create multiple spin-offs for the state.
It will unlock potential future businesses such as tank regional distribution and bunkering and potentially provide return to participating parties and expand the LNG virtual pipeline system (VPS) in Sabah.
LNG VPS, which leverages the LNG plant, will enable Sabah to extend gas use within the state especially in the East Coast region.
SOGDC is actively engaging with local industry players and contractors that provide services like mechanical and electrical services, health and safety, offshore and onshore maintenance and upstream services and other related services.
Based on the engagement with the local contractors in Sabah recently, local contractors are keen to support SOGDC as the anchor for developing local Sabahan contractors for projects within SOGIP to not only to grow but to safeguard their interest while providing services and solutions to their clients.