Sabah Energy Corp launches country’s first micro LNG facilities

KOTA KINABALU, March 28 — Sabah Energy Corporation Sdn Bhd (SEC), which is wholly owned by the state government, reached a milestone today with the official launch of its micro liquefied natural gas (LNG) facilities at the Kota Kinabalu Industrial Park.

These first micro LNG facilities in Malaysia are purpose-built and developed to meet the energy requirement of industries, enterprises and commercial consumers such as palm oil refineries, hotels and resorts as well as shopping malls throughout Sabah.

The facilities, which are 60 per cent owned by SEC, were built in collaboration with Zhangjiagang Furui Special Equipment Company Ltd, a multinational company from China.

The launch was officiated by Sabah Chief Minister Datuk Seri Mohd Shafie Apdal.

Speaking to the reporters after the event, he congratulated SEC and its subsidiary, SEC Gas Sdn Bhd, for taking the bold move to construct the first micro LNG facilities in the country.

He expressed confidence that the micro LNG facilities, which have a daily capacity of 35 metric tonnes, would help boost the state’s economy and industrial sector by supplying gas facilities to small and medium enterprises in Sabah, particularly in the east coast, as well as creating job opportunities for local Sabahans.

“This effort is in line with the state government’s policy to develop Sabah. Although it is a micro LNG facilities project, I am confident production can be increased, thereby benefiting the development of the state’s industrial sector,” he said.

Mohd Shafie said Sabah had a lot of resources that could be utilised for industrial development, including oil and gas, palm oil and timber, as well as tourism that could contribute to the state’s economic growth.

However, the chief minister said the state government would identify Sabah’s other resources and raw materials to diversify the economy and ensure sustainable industrial development. This will ensure that state revenue is not entirely dependent on the timber and plantation sectors.

“We will introduce a game changer soon in terms of land use by ensuring that land in Sabah is not only for palm oil or rubber but also vegetables and fruits for food terminal production. Keningau and Tawau are among the high potential locations for that food terminal sector,” he added.

Meanwhile, SEC chief executive officer Datuk Harun Ismail said with the completion of the third phase of its natural gas distribution project, the company was now able to supply cleaner and cheaper natural gas to an even broader spectrum of industry through the micro LNG facilities with a competitive price. This will translate into cost savings and hence reduced cost of doing business in Sabah.

He noted that about 99 per cent of engineers and technicians working at the micro LNG facilities were local Sabahans.

SEC Gas has signed LNG sale and purchase agreement with five palm oil refineries in the state’s east coast. The new customers are in Sandakan, Lahad Datu and Kunak, with the first delivery made to Lahad Datu on March 16. — Bernama