KOTA KINABALU: The Sabah Gas Master Plan, endorsed by the state Cabinet in October, has been launched and is expected to bring in more oil and gas investment to the state.

       This master plan highlights three distinct investment opportunities for Sabah’s natural gas resources, the first being the construction of a liquefied natural gas (LNG) plant with a capacity of two million tonnes per annum at the Sipitang Oil and Gas Industrial Park (Sogip).

       Chief Minister Datuk Seri Hajiji Noor said the facility, Sabah's first, will provide opportunities to expand LNG distribution across the state.

       “It will allow more industrial and commercial businesses to access and utilise natural gas as a cleaner source of energy,” he said during the launching of the master plan at the new Menara Petronas 2 building here on Tuesday (Jan 4).

       He said the state government will also be taking up a more prominent role in gas marketing and distribution in Sabah, with 120 million standard cubic feet per day (MMscfd) of gas to be made available for the development of key industries.

       Hajiji said natural gas will be supplied from the Sabah Oil and Gas Terminal in Kimanis and Sabah Gas Terminal in Tuaran.

       A heads of agreement (HOA) was signed between Sabah Energy Corporation Sdn Bhd and Petronas for the supply of 70 MMscfd of natural gas.

       A document exchange of a previously signed HOA for 50 MMscfd of natural gas supply for utilisation in Sabah was also witnessed by the Chief Minister.

       Apart from that, Hajiji said the master plan highlights a suite of petrochemical derivative options for Sabah to attract investors, based on market needs and future outlook, leveraging on locally available feedstock.

       He also said several proposals have been recommended in the master plan that include more natural gas exploration activities to ensure sustainable supply.

       The Chief Minister noted that a comprehensive development plan for Sabah must be formulated for greater added value to the industry, including petrochemical downstream development.

       Sogip must be made Sabah's future prime oil and gas downstream investment site but there is still work to be done to make it more appealing to investors, he added.

       Another proposal was on the need to evaluate readily available local talents and improve the needs of the oil and gas, manufacturing and construction industries, he said.

       "A state entity must be identified to monitor the implementation of the Sabah Gas Master Plan's recommendations," he added.

       Hajiji said these developments are testament to the collaborative effort between Petronas and the state government to sustainably pursue the full potential of the domestic natural gas industry.

       "We appreciate Petronas' collaboration with us on the Sabah Gas Master Plan, including efforts to spur an attractive and competitive investment ecosystem for investors.

       “My aspiration is for Sabah to stake its rightful claim and chart a path that benefits Sabahans and future generations,” he said.

       Earlier, Petronas chairman Tan Sri Mohd Bakke Salleh said it is their duty as a trustee of the nation’s hydrocarbon resources to support Sabah in achieving its aspirations and ensuring sustainable development of the state’s natural gas industry.