Sabah to buy 25% PETRONAS ZLNG stake


The HoA was signed by SMJ Energy CEO Datuk Dr. Dionysia Aloysius Kibat (second from right) and PLSB CEO Shamsairi M Ibrahim (fifth from right), in the presence of Sabah Chief Minister Chief Minister Datuk Seri Hajiji Noor (third from right) and PETRONAS President and Group CEO Tan Sri Tengku Muhammad Taufik (fourth from right).

KOTA KINABALU: The Sabah government, through SMJ Energy Sdn Bhd, has signed a head of agreement with PETRONAS LNG Sdn Bhd to acquire 25% equity stake in the US$3.1bil (RM13.17bil) nearshore floating liquefied natural gas (ZLNG) facility in Sipitang.

The ZLNG, currently under construction, is expected to commence operations in the second half of 2027.

Chief Minister Datuk Seri Hajiji Noor said the partnership marked another significant milestone in advancing Sabah’s long-term development goals, which include promoting industrial growth, enhancing energy security, and creating new opportunities to drive the state’s progress.

“Through strategic investments such as ZLNG, we will strengthen the state’s economic resilience while ensuring that the benefits of Sabah’s natural resources directly contribute to the well-being of our people,” he said in a statement yesterday. — Bernama

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