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Priority to Sabah's needs: Yong

Published on: Tuesday, November 11, 2008

Kota Kinabalu: Sabah Progressive Party (SAPP) President Datuk Seri Yong Teck Lee said the Government must ensure that a sufficient gas power plant is built in Kimanis for the energy needs of Sabah before the construction of the gas pipeline to Bintulu is allowed.

He said the Government must prove there would be a surplus of gas because it must be taken into consideration that there are not one, but three Liquefied Natural Gas (LNG) plants in Bintulu.

(These have) a combined capacity of 23 million tonnes per annum (mtpa), the single biggest LNG production facility in the whole world, he said in a statement, Monday.

Furthermore, he said according to reliable sources, there are plans for the LNG facilities in Bintulu to be expanded to take in the gas from Sabah.

"Are Sabahans therefore to expect that there will be any surplus of gas for Sabah?," he asked and suggested that the State Government consider stopping the proposed gas pipeline project by using its powers under the land laws, a State matter under the Federal Constitution.

"Those gas and oil belong to Sabah, not anybody else. Petronas only has a right to extract the oil and gas. If we cannot use it, then do not exploit it.

Leave it there for the future generations," he said.

He said until such time when Sabah's oil and gas industry has reached a full-fledged capacity, and if there is a surplus of gas, then only should the construction of the pipeline be allowed.

He said the failure by Upko in its appeal to get the 500km long pipeline project scrapped, despite claiming victory for getting the Federal Cabinet's agreement to set up a full-fledged petrochemical industry in Sabah, was not a complete surprise.

The former Chief Minister said this meant succumbing to the vested interests of federal bodies like Petronas. According to him, Sabah leaders should have supported Upko President Tan Sri Bernard Dompok's quest to hold the Prime Minister to his word last May to scrap the pipeline project.

But neither the (Upko) State Minister of Industrial Development, Datuk Ewon Ebin nor the Federal Deputy Minister of International Trade and Industry, who is also LDP President Datuk Liew Vui Keong, spoke out against the pipeline, he said.

Yong claimed none of the Umno leaders at the State and Federal levels also seemed concerned that Sabah would suffer serious energy shortages in the next few years.

"For Sabah, which is dominated by Umno, to lose out to Petronas' investments in Sarawak, which has no Umno at all, is a betrayal of the early pledge of Umno to uplift Sabah in comparison to other states," he said.

Yong said Dompok's announcement that "the Federal Cabinet has now agreed to create a full-fledged petrochemical industry in Sabah using oil and gas in Sabah" was contradicted by another Minister (of Plantation and Commodities) Datuk Peter Chin Fah Kui who stated that "Petronas should look into Sabah's gas requirements".

"This vague, non-committal comment from Peter Chin sounds like Petronas has no idea about Sabah's energy needs," he said.

Yong said it was common knowledge that if Upko were to carry out its threat to leave the BN, then Umno and BN can rely on PBS to fill in the void.

"It is not a coincidence that the Prime Minister chose to announce the decision to go ahead with the gas pipeline at the PBS Congress in Kota Kinabalu, while at the same time, praising PBS and its leaders."

"It seems that the impending energy crisis in Sandakan has been forgotten in the decision making on the gas pipeline. Neither has any relevant Minister for industry or energy or natural resource bothered to explain to the people on the gas pipeline and our energy policy," he said.

On Sunday, Chief Minister Datuk Seri Musa Aman explained that the decision by the Federal Cabinet to set up a petrochemical plant in the State was part of the Sabah Development Corridor plan.

He said the State Cabinet had been pursuing the setting up of other downstream oil and gas related activities in relation with the pipeline and that a joint feasibility study involving Petronas and Yayasan Sabah was supposed to have been ready by December.

Nevertheless, said early due consideration on this matter by federal was appreciated as it was in line with the State's wishes.

Deputy Chief Minister Datuk Yahya Hussein also welcomed the Federal Cabinet decision and denied claims by certain quarters that the State Cabinet had not been whole-heartedly pursuing the creation of the petrochemical industry.

He said while these quarters preferred to present their views or suggestions only through the media, the State Government had always opted for more formal and cordial methods like discussions, etc.