Kuala Lumpur: The Sabah Government, through SMJ Energy (SMJE), will acquire a 25 per cent equity in the USD3.1 billion nearshore floating liquefied natural gas (ZLNG) facility in Sipitang following the signing of a Head of Agreement (HOA) with Petronas.
Chief Minister Datuk Seri Hajiji Noor, who witnessed the signing at the Malaysia Petroleum Club, said the deal supports Sabah’s long-term development goals and ensures the State’s resources benefit its people.
ZLNG, currently under construction and due to begin operations in the second half of 2027, will have a processing capacity of 2 million tonnes per annum.
The facility will add to Sabah’s LNG portfolio alongside PFLNG1 and PFLNG2, which are already operating in the State’s waters.
Sabah also aims to acquire a 40 per cent stake in PFLNG1, with due diligence expected to begin in the second half of 2025.
Since inking a Commercial Collaboration Agreement with Petronas in 2021, SMJ Energy has expanded rapidly, holding stakes in several key oil, gas, and petrochemical assets.
SMJE CEO Datuk Dionysia Kibat said the company’s entry into ZLNG is part of its plan to secure long-term, stable returns from quality energy investments.
