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Nation’s first Micro LNG facility
Published on: Friday, March 29, 2019
By: Sherell Jeffrey

KOTA KINABALU:  Malaysia’s first Micro Liquefied Natural Gas facility at Kota Kinabalu Industrial Park that was officially launched, Thursday, will not only spur the economy but provide job opportunities for Sabahans, said Chief Minister Datuk Seri Mohd Shafie Apdal.

Some 99 per cent of the workforce comprises Sabahans, mainly engineers and technicians. 

Although micro in size with capacity of producing 35 metric tonnes daily or equivalent to 1.8 million standard cubic feet a day, it can meet the energy requirements of small and medium industries across the State. 

 Consumers would benefit from cleaner and cheaper fuel at a competitive price, which in turn translates to cost savings and reduce the cost of doing business in Sabah. 

Kudos goes to Sabah Energy Corporation Sdn Bhd (SEC), a wholly owned company of the State Government, which reached this significant milestone, in collaboration with Zhangjiagang Furui Special Equipment Company limited, a multinational company from China. 

 SEC also inked a Liquefied Natural Gas (LNG) Sales and Purchase Agreement with five palm oil refineries in Sandakan, Lahad Datu and Kunak. The first delivery was made to Lahad Datu on March 16. 

 Shafie noted that Sabah being one of the biggest gas producers in the nation should benefit from this, citing the way forward is among others to work with Petronas focusing on downstream activities. 

“We have the ability, not only in terms of sufficient natural resources, we also realise and know that the demand for gas at international level is high, the price is stable and this is what we need to boost on,” he said. 

He expressed confidence that Sabah would soon be able to increase gas production capacity. 

On another note, he said, they are in the midst of discussing with the Federal Government about the east coast gas pipeline project which was put on hold by  Federal last year. 

“We are in the midst of discussion on how best we can ensure that this plan can be ignited, but of course it is a question of money,” he said. 

In addition to banking on resources such as oil and gas, timber, palm oil and sand, the State Government is also progressing towards a game changer in terms of using land not only for rubber and oil plantation, but fully used to produce food terminal. 

He cited Tawau and Keningau which has huge potential for this, with its fertile yet undeveloped land, which can benefit the people. 

“We know that the food industry for example has a fast turnover, unlike oil palm which takes seven to eight years. Fruits and vegetables take a shorter time to produce.

“We know and realise that humans need to eat, not once a month but every day, so we have to ensure food security in this part of the area, that we can be the main supplier not only for Malaysia but also the world,” he said. 

He also noted the need to develop Keningau where there are over 6,000 cattle owned by private companies and the State Government. 

“Not only for cattle milk production, but also for export to the peninsula, this is a wide opportunity for Sabah if we can boost our production capability not only in terms of food but also in oil and gas for example,” he said. 

Also present were Sabah State Secretary Datuk Seri Hashim Paijan, Sabah Energy Corporation Sdn Bhd Chairman Datuk Ramlee Dua, SEC Chief Executive Officer Datuk Harun Ismail and Zhangjiagang Furui Special Equipment Co. Ltd President, Wu Pin Fang, among others. 



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