KOTA KINABALU: Sabah has crafted a gas masterplan, which is expected to help bring in more oil and gas investments to the state.

       The masterplan, endorsed by the state Cabinet last October, highlights three distinct investment opportunities for Sabah’s natural gas resources with 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.

       Chief Minister Datuk Seri Hajiji Noor said the LNG facility, which would be the first in the state, will provide opportunities for Sabah to expand its LNG distribution across the state through activities such as a virtual pipeline system.

       It would allow more industrial and commercial businesses to utilise natural gas as a cleaner source of energy, he said during the launch of the masterplan at the new Menara Petronas 2 building here yesterday.

       He added that 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 in the state.

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

       Signifying the progress of this intent, 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 masterplan highlights a suite of petrochemical derivative options for Sabah to attract investors, based on market needs and future outlook, and leveraging on locally available feedstock.

       He said several proposals have also been recommended for the masterplan that includes more natural gas exploration activities to ensure sustainable supply.

       He also said a comprehensive development plan for Sabah must be formulated to create more value-added industries, including petrochemical downstream development.

       The Sipitang Oil and Gas Industrial Park 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, Hajiji said.

       Another proposal was on the need to evaluate readily available local talent and to improve them to meet the needs of the oil and gas, manufacturing and construction industries, he added.

       “A state entity must be identified to monitor the implementation of the Sabah gas masterplan’s recommendations,” he 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,” he added.

       “We appreciate Petronas’ collaboration with us on the masterplan, 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 the company’s duty as a trustee of the nation’s hydrocarbon resources to support Sabah’s aspirations to develop its natural gas industry in a sustainable manner.