KOTA KINABALU: DESPITE a minor hiccup, the RM4.53 billion Trans Sabah Gas Pipeline (TSGP) project is on track and is in the final phase of development.
Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili said the project, which was under the purview of the Finance Ministry, was at the advanced stage and contracts would be awarded within the next six months.
The proposed pipeline is supposed to cut across the state, from Kimanis on the west coast, to Sandakan in the east coast, passing through forests and oil palm plantations.
Ongkili said Suria Strategic Energy Resources Sdn Bhd, a company wholly owned by the Finance Ministry, had finalised the packages and was the midst of conducting surveying works as well as acquiring land.
“However, there is a slight delay as Finance Ministry and Petroliam Nasional Bhd are still finalising the alignment (of the project).”
The first (initial) discussion had included Gayang in Tuaran, which would bypass Putatan here, and Kinarut in Papar.
“But Gayang pipeline supply will be insufficient in the long term and has to be expanded to make it bigger or sourced from Kimanis, which is the main supply of the pipeline.
“The changes will enable the project to link Kota Belud and Kota Marudu by sea, instead of the land at Putatan and Papar,” he said, during a press conference here recently.
Ongkili, who is also Kota Marudu member of parliament, said the construction of a 300mw plant in Sandakan would depend on the progress of the project.
“Finance Ministry may proceed with the construction in Sandakan in several phases, of which the first round will involve 100mw.
“The transportation of the gas can be done via portable vehicles,” he added.
Last month, Prime Minister’s Department announced the project would be funded by a soft loan of RM4.53 billion from the Export and Import Bank of China and guaranteed by the government.
It was reported that China Petroleum Pipeline Bureau would become the project’s engineering, procurement, construction and commissioning contractor.