KOTA KINABALU: PETRONAS has reached the Final Investment Decision (FID) for a nearshore liquefied natural gas (LNG) facility in Sabah.
The Engineering Procurement, Construction and Commisioning (EPCC) contract for the project was awarded to the winner of the dual Front End Engineering Design (FEED) competition contracted out in October last year.
Chief Minister Datuk Seri Panglima Haji Hajiji Haji 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 nearshore 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.
The FID and the award of the EPCC contract mark another significant milestone for the project that will be located at the Sipitang Oil and Gas Industrial Park (SOGIP).
Designed to produce 2.0 million tonnes per annum (MTPA) of LNG, the facility is scheduled to reach commercial operations by the second half of 2027. Upon completion, Sabah will have one of the world’s largest combined floating LNG capacity to date.
PETRONAS Chief Operating Officer and Executive Vice President & Chief Executive Officer of Gas Business, Adnan Zainal Abidin said, “As we transition towards a lower carbon future, PETRONAS continues to advocate for greater use of natural gas. We will leverage our technological expertise for the development of the project to unlock gas resources in an optimised and environmentally-friendly manner.”
“PETRONAS remains resolute in supporting the Sabah State Government’s aspiration for its oil and gas industry. The development of the facility under the Sabah Gas Masterplan will strengthen the position of the State and Malaysia as an attractive natural gas hub, contributing to the mutual prosperity of Sabah and the nation at large.”
The nearshore LNG facility will expand PETRONAS’ global portfolio of LNG assets, further strengthening the position of the company as among the world’s largest LNG providers.