KOTA KINABALU, March 6 — The Sabah Energy Corporation Sdn Bhd (SEC) is expected to take control control of natural gas supply in the state from Petronas beginning next month, Chief Minister Datuk Seri Hajiji Noor said.
He said this will allow the state-owned firm to play an integral role in the growth of industries and economic development in Sabah, following several agreements signed with major investors today.
“The state government’s effort to play a lead role in the gas industry through its wholly-owned company, SEC is now bearing fruit following the signing of the agreement with Petronas in October last year,” he said, adding that the SEC has now selected downstream gas pipeline assets and supply of natural gas contracts.
He said this after witnessing the signing of the gas sales agreement (GSA) and heads of agreement (HoA) at a ceremony today.
The first GSA was a long-term deal between SEC with SBH-Kibing Solar New Materials (M) Sdn. Bhd for their silica sand processing and solar panel manufacturing project worth RM2 billion
The company’s investment of RM4.2 billion in building its first overseas copper foil manufacturing facility at the Kota Kinabalu Industrial Park (KKIP) is part of Sabah’sefforts to promote non-power sector industries in the state and position the state as a hub for electric vehicle (EV) components.
SEC has also signed agreements with Petronas Gas Berhad’s subsidiary, Regas Terminal (Lahad Datu) Sdn Bhd, for the long-term gas supply to the recently-announced RM230 million plant project at Sipitang Oil andGasIndustrial Park (SOGIP) in Sipitang.
The plant, targeted to be completed in the first quarter of 2026, will play an integral role as the sole energy supplier to the state’s first nearshore 2.0 million tonnes per annum (MTPA) floating liquefied natural gas facility. This plant also serves as a potential heat source for future consumers in SOGIP.
On January 17, 2023, SEC had concluded the natural gas sales novation agreement with Petronas, Petronas Carigali Sdn Bhd and existing independent power producers (IPPs)with a total capacity of 880 MW.
The novation agreement marked the significance of the state-owned company as the major natural gas supplier for the power sector. Representatives from the IPPs, namely Kimanis Power Plant Sdn. Bhd, SPREnergy (M) Sdn Bhd, Ranhill Powertron Sdn. Bhd, Ranhill Powertron II Sdn Bhd, and SepangarBay Power Corporation Sdn Bhd.
