KOTA KINABALU: Sabah state government-linked Sabah Energy Corporation (SEC) is now the largest supplier and transporter of domestic natural gas in the state with the acquisition of PETRONAS gas contract.
Chief Minister Datuk Seri Hajiji Noor (pic) said the acquisition of the contract immediately puts SEC as one of the main oil and gas players in the industry in Malaysia.
With the contract awarded to SEC, he said the state-linked company was the largest domestic gas supplier and transporter in the state.
"It involves moving more than 250MMscfd (Million Standard Cubic Feet Per Day) of natural gas to the existing IPP (independent power plants)," he said, adding that SEC was now better poised to increase its participation in the oil and gas industry.
"The SEC is significantly involved as one of the main players in the oil and gas industry in Malaysia, and is in line with the aspirations of Sabah Maju Jaya to advance the downstream oil and gas industry in Sabah," he said.
Hajiji was speaking at the Natural Gas Supply Agreement and Exchange of Assets and Gas Business Sale and Purchase Agreement Documents between PETRONAS and SEC here Tuesday (Oct 11).
Hajiji's speech was read by state Local Government and Housing Minister Datuk Seri Masidi Manjun, who is also state Finance Minister II.
Hajiji said that the signing marked another important milestone for the state after the signing of the Commercial Cooperation Agreement or Commercial Collaboration Agreement (CCA) between the State Government and PETRONAS on Dec 7, 2021.
He said that it was proof of the success of the Gabungan Rakyat Sabah-Barisan Nasional-led state government in establishing good relations with the federal government and PETRONAS that complemented each other's mutual benefits.
He said with the signing of the Natural Gas Supply Agreement (GSA), Sabah could take the lead in marketing and distributing natural gas that will attract both domestic and foreign investments.
SEC will take over the gas pipelines from PETRONAS from Jan 1, 2023 and would be responsible for about 86% of the natural gas supplies of the IPPs.