Bernama December 27, 2022 11:24 am +08
KOTA KINABALU (Dec 27): Petroliam Nasional Bhd (Petronas) has reached the final investment decision (FID) for a near-shore liquefied natural gas (LNG) facility in Sabah.
The engineering, procurement, construction and commissioning (EPCC) contract for the project was awarded to the winner of the dual-front-end engineering design competition in October last year.
Sabah Chief Minister Datuk Seri Hajiji Noor said the LNG project is a step in the right direction, as the state government continues to pursue more deals to get additional revenue via equity participation for Sabah.
“The near-shore 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 in a joint statement with Petronas chief operating officer Adnan Zainal Abidin on Tuesday (Dec 27).
The FID and the award of the EPCC contract mark another significant milestone for the project located at the Sipitang Oil and Gas Industrial Park, where it is expected to produce two million tonnes per annum of LNG.
The facility is scheduled to achieve commercial operations by the second half of 2027.
Meanwhile, Adnan, who is also the executive vice-president and chief executive officer of Petronas' gas business, said that in view of the transition towards a low-carbon future, the group will continue to advocate greater use of natural gas.
“The development of the facility under the Sabah Gas Masterplan will strengthen both the position of the state and Malaysia as a whole as an attractive natural gas hub, contributing to the mutual prosperity of Sabah and the nation.
“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, adding that Petronas remains resolute in supporting the Sabah government’s aspiration for its oil and gas industry.
The near-shore LNG facility will expand Petronas' global portfolio of LNG assets, further strengthening the group’s position as one of the world’s largest LNG providers.