KOTA KINABALU: Sabah’s first and largest near-shore floating liquefied natural gas (LNG) facility known as the ZLNG project, is expected to allow gas channeled statewide especially at the east coast region.

       A memorandum of understanding (MoU) was inked on Thursday (April 21) between Petronas and Sabah Oil and Gas Development Corporation Sdn Bhd (SOGDC) to build the RM8.8bil facility at Sipitang Oil and Gas Industrial Park (SOGIP), held after the project’s fourth joint technical meeting.

       Deputy Chief Minister cum Industrial Development Minister Datuk Dr Joachim Gunsalam who witnessed the event, said the signing strengthened the existing collaboration between both parties towards materialising the project, which is currently under the Front-End Engineering and Design (FEED) stage and targeted to complete Final Investment Decision (FID) at the end of this year.

       "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," Joachim said in a statement on Friday (Apr 22).

       Under the agreement, Petronas and SOGDC would cooperate in realising the project, which included SOGDC assisting Petronas in securing all necessary approvals, permits and/or utilities as SOGIP developer.

       Signing on behalf of Petronas was its vice-president (LNG Assets) Abang Yusuf Abang Puteh while SOGDC was represented by its director Thomas Logijin, who was also Joachim’s ministry permanent secretary.

       SOGDC was actively engaging with local industry players and contractors, who were keen to support the Corporation as the anchor for developing the local Sabahan contractors for projects within SOGIP, added Joachim in the statement.