KOTA KINABALU: Sabah looks forward to becoming one of the major energy hubs in the Southeast Asia energy sector following the launching of a RM8.88bil (USD2bil) Oil and Gas, Energy Hub Project at the Sipitang Oil and Gas Industrial Park (SOGIP) here.
Sabah Chief Minister Datuk Seri Hajiji Noor said this project is set to play a pivotal role in Malaysia's energy and industrial strategy as well.
"SOGIP will serve as a catalyst for further growth in the energy sector, which is crucial for Sabah's sustained economic growth,” he said when launching the Oil and Gas, Energy Hub Project held at the Sabah International Convention Centre (SICC) here, Tuesday (Feb 11).
“Most importantly, this project will open up more opportunities for collaboration, innovation, and development in the oil, gas, and energy sectors, which will benefit both the industry and local communities," he said.
Hajiji said the SOGIP development will strongly emphasise on environmental sustainability, in line with the government’s initiative towards reducing its carbon footprint and integration of cleaner energy sources such as liquified natural gas, among other things.
He said the energy storage and distribution systems within SOGIP are being developed to support Malaysia's long-term renewable energy goals.
He said by facilitating a steady supply of natural gas and other lower-carbon fuels, SOGIP can help bridge the transition from fossil fuel dependency to greater adoption of renewables, such as solar and wind power, in Malaysia's energy mix.
The project is a collaboration between Sabah Oil and Gas Development Corporation (SOGDC), which manages SOGIP and Gibson Shipbrokers Limited, a maritime, energy, and associated industries speciality company.
To be done in two phases, the project would see the construction of a state-of-the-art port to support energy transportation and trade activities among others utilising 80% local workforce.
Hajiji said the successful execution of the project will not only enhance Malaysia's domestic economy but also support regional energy security and boost international trade.
"With strong support from both private sector partners and the government, SOGIP is anticipated to attract additional investments in energy infrastructure, technological advancements and industrial expansion,” he said, adding it will also offer job opportunities, skills training and community empowerment.
"As Malaysia continues to strengthen its presence in global energy markets, SOGIP will play a strategic role toward economic resilience, energy independence, and sustainable industrial growth," he said.
He reminded investors to prioritise the employment of Sabahans in all projects and operations within the state and urged industry players to comply with this fundamental requirement.
SOGDC chairman Datuk Seri Rahman Dahlan said the SOGDC has been tasked with developing the oil and gas industry in Sabah, and today, has received some USD2bil worth of investments from countries such as Singapore, United Kingdom, Philippines, Japan and Saudi Arabia.
“This is exciting because it will place Sabah as a forward storage hub for major Middle Eastern producers. So for example if they want to sell their oil to China, Japan or South Korea, they do not have to wait for the supply from Middle Eastern countries,” he said.
This project is not just an industrial achievement but a transformative platform for SOGIP and Sabah in terms of economic growth, he said.
This project is scheduled to start its first phase sometime this year.
