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Natural gas

Sabah Energy Corporation and PETRONAS Sign Agreements to Boost Downstream Gas Industry in Sabah

Strategic Insights

— 1 min read

The Minister of Local Government and Housing, and Finance Minister II, Datuk Seri Panglima Masidi Manjun, witnessed the signing of key agreements between Sabah Energy Corporation (SEC) and PETRONAS to supply natural gas to SEC and sell selected gas pipeline assets and businesses in Sabah. The agreements include the supply of 120 million standard cubic feet per day (MMscfd) of natural gas and the sale of seven onshore gas pipelines in Sabah. PETRONAS will also provide transitional services to support the smooth transition of operations and maintenance of the gas pipelines. Additionally, Universiti Teknologi PETRONAS (UTP) and University College Sabah Foundation (UCSF) signed a Memorandum of Understanding (MoU) to pursue potential collaboration in academic, research, and student exchange programs.

Key Takeaways:

  • The agreements between SEC and PETRONAS will boost the downstream gas industry in Sabah, with SEC becoming the largest domestic supplier and transporter of natural gas in the state, moving more than 250MMscfd of natural gas to existing IPPs.
  • SEC will acquire PETRONAS' gas contracts in Sabah and will be in a position to further grow its gas business in the state with a bigger customer base and control of the infrastructure.
  • The agreements support the Sabah State Government's aspirations to see the increased participation of state GLCs in the oil and gas industry.
  • The education MoU between UTP and UCSF will enhance the development of Sabah human capital and capability to support the Sabah Maju Jaya vision.
  • PETRONAS remains committed to supporting the Sabah State Government's aspiration for its oil and gas industry and believes that such partnerships will responsibly realize the potential of the domestic oil and gas business for the economic growth and prosperity of Sabah and the nation.

Statistics:

  • The supply of 120 million standard cubic feet per day (MMscfd) of natural gas from PETRONAS to SEC.
  • SEC will move more than 250MMscfd of natural gas to existing IPPs.
  • The sale of seven onshore gas pipelines in Sabah to SEC.
  • PETRONAS will provide transitional services to support the smooth transition of operations and maintenance of the gas pipelines.

Sources:

  • "Sabah Energy Corporation and PETRONAS Sign Agreements to Boost Downstream Gas Industry in Sabah" (2023) - Gulfoilandgas.com
  • "Sabah Energy Corporation Signs Agreements with PETRONAS to Boost Gas Supply in Sabah" (2023) - SyndiGate Media Inc.

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