KOTA KINABALU: Sabah will have one the world’s largest floating liquefied natural gas combined facility, following national oil company Petroliam Nasional Bhd (PETRONAS) giving the nod for the first nearshore operations.
The facility, located off Sipitang is scheduled to reach commercial operations by the second half of 2027, with PETRONAS having reached the final investment decision (FID) for a nearshore LNG facility in Sabah, according to a joint statement issued by PETRONAS and the Sabah government.
The engineering procurement, construction and commissioning (EPCC) contract for the project was awarded to the winner of the dual front end engineering design (FEED) competition contracted out in Oct last year.
Chief Minister Datuk Seri Hajiji Noor said the LNG project was a step in the right direction as the state government continued 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 said.
The FID and the award of the EPCC contract marked another significant milestone for the project that will be located at the Sipitang Oil and Gas Industrial Park (SOGIP), where it is expected to produce two million tonnes per annum of LND.
On completion, Sabah will have one of the world’s largest combined floating LNG capacity to date, said the statement.
PETRONAS chief operating officer Adnan Zainal Abidin said given the transition towards low-carbon future, the national oil company would continue to advocate for greater use of natural gas.
“We will leverage our technological expertise for the development of the project to unlock gas resources in an optimised and environmentally-friendly manner,” he said.
Adnan, who is also the executive vice-president and chief executive officer of Petronas Gas Business, said the company remained resolute in supporting Sabah government’s aspiration for its oil and gas industry.
“The development of the facility under the Sabah Gas Masterplan will strengthen the position of the state and Malaysia as an attractive natural gas hub, contributing to the mutual prosperity of Sabah and the nation,” he added.
The nearshore LNG facility will expand PETRONAS’ global portfolio of LNG assets, further strengthening the position of the company as among the world’s largest LNG providers.
