Sabah overshadows Labuan overnight
Published on: Wednesday, January 02, 2013
Labuan: The year 2012 was another uneventful one without any new exciting development, in fact, the oil and gas sector symbolised by the Asian Supply Base (ASB), a fully integrated logistic hub of the oil and gas industry, was hard-pressed for land for expansion, fell under the shadow of Sabah with Petronas making a commitment to spend RM45 billion for downstream and upstream activities and building a RM4.5 billion Sabah Ammonia and Urea project (Samur).When Prime Minister Datuk Seri Najib Tun Razak announced here in 2011 that Labuan would become the third oil and gas hub after Teluk Ramunia and Pengerang in Johore, many had looked forward to 2012 to be busy and a booming year for Labuan though the island received no specific allocation under the 10th Malaysia Plan and annual budget.Instead, Sabah was the main focus in the oil and gas industry and Labuan was not the darling for investors. Adding to the Samur project, an oil and gas industrial park (SIAD) is being developing on 2,000 acres of land to attract investors for the development of oil and gas storage facilities, including a refinery.
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It has been reported that some RM8 billion was planned to be spent on Sipitang over the year.While in the case of ASB which had been keen to expand into downstream activities by producing products from the 100 derivatives in methanol which is in abundant production, was unable to do so due to getting no suitable land for the purpose.ASB Chief Executive Officer Datuk Harris Tan said that ASB had requested the Federal Territories and Urban Wellbeing Minister to make available suitable land. ASB was understandably keen to expand and diversify to stay ahead of supply bases being developed in the region as even Brunei after being the rich blocks of L and M is considering having its own supply base and in Philippines, there was the Palawan Supply Base coming up strongly.
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To overcome the shortage of industrial land, Harris suggested land reclamation and bridge link to open up the hinterland saying that if present land circumstances prevailed, ASB may be compelled to have its future expansions in Sipitang. The year also lapsed without any signs of the important RM1.4 billion proposed modern port at Rancha Rancha to support the oil and gas industry shaping up.
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Another setback was the RM4 billion mega integrated oil and gas complex built at Pulau Daat and expected o entrench Labuan's position in the oil and gas sector hit the doldrums with the main investors from China no longer keen to proceed further. Federal Territories and Urban Wellbeing Minister Datuk Raja Nong Raja Zainal Abidin acknowledged there were hitches, adding that the issues that caused the project to stop were being discussed and would be resolved.While Petronas made big news in Sabah for its massive investments, it also made news here but for the wrong reasons.A 25,879-tonne chemical carrier "MT Bunga Alpina" belonging to Malaysia International Shipping Corporation (MISC) while loading methanol at the methanol terminal jetty on July 26 caught fire and exploded, resulting in several crew members dead and some properties damaged. The incident shocked residents and Petronas with MISC and Labuan Corporation quickly setting up a counter to accept claims from parties who had suffered damages. But till now none of the submitted claims have been known to be paid.The incident was first of this kind and CEO-President of Petronas Chemical Group Bhd., Dr Abdul Hapiz Abdullah described it as the worst fire jetty incident.The cause of the incident had not been confirmed officially but last September, the Department of Occupational Safety and Health (DOSH) Deputy Director, Mohtar Musri said when the vessel was loading methanol, it was raining. He did not rule out that the vapour from the chemical was struck by lighting, causing the fire and explosion. Another ship fire incident was in October when the upper deck of ro-ro ferry "Wawasan Perdana" caught fire at dawn. The incident disable the vessel from service for several weeks causing a shortage of ferry service.The year also heard louder voices for the Labuan-Menumbok bridge with the Umno division for the first time in a delegates conference, passed a motion urhing the government to implement the project.MIC also lent support on the issue. This showed that after 15 years, the saga of the Labuan bridge continues. The Federal Government seeing the disappointment of more folks over the bridge issue came up with the alternative of shortening the Labuan-Menumbok route after studies. Another study was also promised on the bridge before making a final decision on it - this further infuriated many with some asking how many studies were needed when universities experts had already concluded the study and recommended that the bridge was necessary.During the last bridge proposal, the Government announced a 50 per cent discount in travel fare on ferries for local folks and commercial vehicles. The discount would cost the Government RM17.5 million per year with the hope that this would help silence demand for the bridge.On the political frontm what grabbed interest was the news that the Members of Parliament, Datuk Haji Yussof Mahal, serving his first term got a bankruptcy judgment against him for reportedly failing to pay RM16 million Sabah Development Bank loan.Despite this, Yussof who is also the Chairman of Labuan Corporation, Barisan Nasional Committee Chairman and Umno Information Chief continued to perform his duties with no clear reaction from Umno, except the division here saying that it was the MP's personal problem and that he (Yussof) was resolving it. While the Speaker of Parliament, Tan Sri Pandikar Amin Mulia, apart from saying that he was awaiting official notification on the matter from the Department on Insolvency did not say anything further on the matter.Confusion resigned over the legal status of the MP prompting former MP Datuk Suhaili Abdul Rahman asking Umno to clear the air on the matter. Stay up-to-date by following Daily Express’s Telegram channel.
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