SEC expands gas distribution network
Published on: Friday, March 17, 2017
Kota Kinabalu: Sabah Energy Corporation Sdn Bhd (SEC) is expanding its gas distribution network to reach out to new segments of energy users through the building of a plant that converts natural gas from its gaseous form to liquid, the first of its kind in Malaysia.The State Government-linked company is embarking on the project in partnership with China's Zhangjiagang Furui Special Equipment Co. Ltd (FURUISE) through the setting up a company known as SEC Gas Sdn Bhd.The company is to build, own and operate the plant which will be located at the Kota Kinabalu Industrial Park (KKIP).
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When launching the SEC's third phase gas distribution initiative Thursday, Chief Minister Datuk Seri Musa Aman praised the company for taking the initiative to breathe fresh air to the State not only in the form of bringing new technology but also expanding the benefits of natural gas to a wider spectrum of energy consumers."The State Government welcomes this smart partnership between SEC and FURUISE to develop the project in Sabah. We want to see more of such partnerships between State GLCs and the private sector so that we can further develop our economy," he said.He reiterated that the oil and gas is a growth sector that Sabah is always keen to continue developing, including through the downstream processing of the natural commodity.He said along with the agriculture development with focus on palm oil production, manufacturing from the related downstream opportunities and tourism, Sabah is diversifying its economic base in order to help local businesses attract local and foreign investors.
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He also reiterated that all efforts, however, must bring benefit to the people in terms of more employment opportunities and human capital development, as well as more opportunities for local businesses, acquisition of new technologies and lower cost of doing business."(These) are some of the key benefits that must be emphasised in present and future partnerships," said Musa, while urging the SEC to replicate its business model to other parts of Sabah and also aim at having an international presence in the BIMP-EAGA region in the future.
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The SEC has been distributing natural gas which is a cleaner and cost competitive energy by pipeline since 1986.The first phase of pipeline distribution was then followed by an alternative approach to bring natural gas beyond the boundaries of the physical pipeline network. The second phase, known as the Virtual Gas Pipeline System (VPS), was launched in 2012 that enabled the SEC to increase gas delivery volume by four times.The company currently supplies natural gas to 22 customers within the greater Kota Kinabalu area.SEC Chief Executive Officer Dato Harun Ismail, however, said there are other segments of energy users that require the company's natural gas which is cleaner and cheaper than alternative fuels."These potential users are constrained by either their smaller consumption of face space constraints for our Compressed Natural Gas storage tanks."This market is mainly the SMEs, SMIs and commercial users. Another segment are factories that are located beyond the logistic capability of our current Compressed Gas delivery system," he said.He pointed out that SEC had done an extensive research in past few years and found an alternative approach to deliver natural gas to the segments of energy users."The new joint venture company has been formed to build a facility in KKIP to convert natural gas from its gaseous form to liquid. The liquid natural gas will then be distributed in tankers to the customers' premises. The liquid natural gas storage tanks at the customers' premises are compact and ideal for smaller volume users. Stay up-to-date by following Daily Express’s Telegram channel.
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