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PETRONAS, SOGDC to build Sabah’s first, largest RM8.8b ZLNG

  • Writer: SOGCE ADMIN
    SOGCE ADMIN
  • Apr 28, 2022
  • 2 min read

Updated: Dec 19, 2022

Posted By: Warta Orientalon: April 22, 2022


Dr. Joachim (centre) with Abang Yusuf (third left) and Thomas (third right) showing the signed MoU


KOTA KINABALU: Petroliam Nasional Berhad (PETRONAS) and Sabah Oil & Gas Development Corporation Sdn Bhd (SOGDC) signed a Memorandum of Understanding (MOU) to build Sabah’s first and largest near-shore floating liquefied natural gas (LNG) facility known as ZLNG project at Sipitang Oil and Gas Industrial Park (SOGIP).


With an estimated investment value of RM8.8 billion, the signing strengthening the existing closer 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 Final Investment Decision (FID) on 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/or utilities as SOGIP developer.



Dr Joachim (centre) witnessed

Abang Yusuf (seated, left) and Thomas signing MoU.


The signing ceremony was held at Le Meridien Kota Kinabalu subsequent to the adjournment of the 4th Joint Technical Meeting of the ZLNG project.


It was attended by the Deputy Chief Minister cum Industrial Development Minister, Datuk Dr Joachim Gunsalam.


Abang Yusuf Abang Puteh, Vice President LNG Assets, Gas Business signed on behalf of PETRONAS, while Permanent Secretary of Industrial Development Ministry cum Director of SOGDC, Thomas Logijin signed on behalf of SOGDC, witnessed by Hj Abdul Kadir Hj Abdullah, Managing Director cum Chief Executive Officer of SOGDC.


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 LNG Virtual Pipeline System (VPS) in Sabah. LNG VPS, which leverages the LNG plant, will enable Sabah State to extend gas use within Sabah 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 the 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.


 
 
 

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