KUALA LUMPUR: Sabah will have a new liquefied natural gas (LNG) facility with a capacity of 2.0 million tonnes per annum (MTPA) at the Sipitang Oil and Gas Industrial Park.
Sabah will also have a suite of petrochemical derivative options to attract investors and take up a more prominent role in gas marketing and distribution with 120 MMscfd volume of gas to be made available for development of key industries in the state.
All these are distinct investment opportunities with the launch of the Sabah Gas Masterplan by Petroliam Nasional Bhd (Petronas) and the state government today.
In a joint statement, Petronas and the state government said the LNG facility would provide opportunities for Sabah to expand its LNG distribution through activities such as the virtual pipeline system.
This allows more industrial and commercial businesses to access and utilise natural gas as a cleaner source of energy.
The natural gas will be supplied from Sabah Oil and Gas Terminal in Kimanis, and Sabah Gas Terminal in Tuaran.
Sabah Energy Corp Sdn Bhd and Petronas today signed a heads of agreement (HOA) 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.
Sabah Chief Minister Datuk Seri Hajiji Noor said the state government would continue 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," he said in a statement today, after launching the masterplan at Menara Petronas 2 in Kota Kinabalu.
Petronas chairman Tan Sri Mohd Bakke Salleh said Petronas would support Sabah to achieve its aspirations with the sustainable development of its 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," he said.
Earlier, the chief minister officiated the new Menara Petronas 2 Kota Kinabalu, located next to the existing Menara Petronas 1 in Sembulan, and toured a gallery featuring a display of Petronas' operations in the state.
The 11-storey building, built at the cost of RM190 million, is connected to the existing Menara Petreonas 1 by a three-storey link housing a multipurpose hall and centralised meeting rooms.