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SOGDC inks six MoUs worth over RM19 billion

Updated: Dec 19, 2022


Mazlan (second from right) after the MoU signing ceremony that was witnessed by Hajiji (second from left).

KOTA KINABALU (Mar 29): ADSI Engineering Sdn Bhd on Tuesday signed a Memorandum of Understanding (MoU) with Sabah Oil & Gas Development Corporation Sdn Bhd (SOGDC) to develop a gas power plant in Sipitang Oil and Gas Industrial Park (SOGIP).

The signing ceremony which was witnessed by Chief Minister Datuk Seri Panglima Hajiji Noor, was held at the Sabah International Convention Center (SICC) in conjunction with the Sabah Maju Jaya (SMJ) Halatuju one year anniversary celebration.

Signing on behalf of ADSI were its Group CEO Mazlan Abu Bakar and director Johan Mohamad while SOGDC was represented by its CEO Abdul Kadir Damsal with Deputy Permanent Secretary of the Industrial Development Ministry, Benedict Bisoni, as witness.

The power plant will add energy to the Sabah Electricity Sdn Bhd (SESB) grid and support industrial need for sustainable energy and stability, said Mazlan.

“SOGIP will have its own reliable source of power requirement generated for the petrochemical plants within SOGIP. This would attract more investors hence in line with Sabah Maju Jaya state development plan,” he told reporters after the signing ceremony.

Mazlan said construction of the RM900 million power plant is expected to commence by the end of the year and completed in two years time.

This will be the first phase of the power plant, he said, adding that the second phase is scheduled to commence in 2024.

Once operational, the power plant will produce about 400 MW of electricity , he said.

“We are looking at 200 MW from the first phase and another 200 MW once the second phase is up and running. In the initial stage, this power plant will be using natural gas supplied via pipeline by a local gas supplier.

“In the near future, ADSI will evolve and develop its own regasification facilities which means ADSI will be able to import its very own LNG for sustainable and long-term gas supply simultaneously being independent of local gas supplier eventually,” Mazlan said.

According to him, the project will open up job opportunities for locals in the area as ADSI will require about 300 people for the construction phase of the project.

And once the power plant is up and running, they will need a team of 100 personnel to operate it, he said.

The MoU signed was among the six SOGDC inked on Tuesday with a total investment of more than RM19 billion.

Petroventure Energy Sdn Bhd (PESB) will construct, own and manage a petroleum oil storage and refinery plant in SOGIP. This investment is worth RM6 billion.

The other MoU signed was between PMB and SOGDC for the construction of a silicon metal plant. The plant costing about RM2 billion will be PMB’s second silicon metal plant in SOGIP.

The company wants to make Sabah as a main silicon producer in the world and once operational, the plant will offer about 1,000 job opportunities.

SOGDC also signed a MoU with SCIG, an investment and construction group of companies owned by the China government to construct a green diesel plant with an investment of RM4 billion.

Other MoUs are with Korean company SR to build a RM2 billion hydrogen-ammonia plant in SOGIP and with SISMA Energy to develop a regasification facility in SOGIP worth RM5 billion.



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