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Five key Petronas projects coming onstream this year

by Sandra Sokial. Posted on January 11, 2013, Friday

Joseph Podtung

KOTA KINABALU: Sabah’s oil and gas industry is set for a big step forward when five key projects of Petronas in Sabah come onstream this year.

These projects, which were announced about two years back, are progressing well and achieving targeted milestones in their implementation, according to Petronas Sabah and Labuan chairman Joseph Podtung.

The five projects are Sabah Oil and Gas Terminal (SOGT), Sabah-Sarawak Gas Pipeline (SSGP), Kimanis Power Plant (KPP), Kimanis Petroleum Training Centre (KTC) and Kinabalu Non Associated Gas (NAG) upstream development.

Most of the projects of Patronas are expected to be completed within this year while some may begin operations early 2014, Joseph said during a luncheon with the media here yesterday.

“These projects, many of which are world-scale, are part of Petronas’ overall plan to optimise the value of the oil and gas resources found offshore Sabah,” he said.

In 2011, Petronas announced a host of projects, both upstream and downstream, involving a combined capital expenditure of RM45 billion, he said.

These plans also included the Sabah Ammonia Urea Plant (SAMUR) in Sipitang and the Lahad Datu Regasification Terminal, he added.

Joseph disclosed that the RM3.8 billion SOGT project in Kimanis, which is an onshore oil and gas receiving, storage, processing and export terminal, will receive the resources via subsea pipelines from three offshore upstream projects – Gumusut-Kakap, Kababangan and Kinabalu NAG.

Its common utilities and facilities to receive gas are expected to be ready in the third quarter this year and will begin receiving oil in the first quarter of 2014.

Once fully completed, the SOGT will have a capacity of 260,000 barrels per day (bpd) of oil, 1,250 million standard cubic feet per day (mmscfd) of natural gas and 77,000 bpd of condensates.

“The RM4.6 billion SSGP is expected to be ready by end of this year. The construction of the Sabah’s side of 512 kilometres pipeline, involving a length of 92km, has been completed,” Joseph said in his briefing on the progress of Petronas projects in Sabah.

He said the first block of the 300 Megawatts (MW) KPP that involves a total investment of RM1.55 billion, is expected to be ready by the third quarter of this year, while the other two blocks are expected to be completed in the first and second quarter of 2014 respectively.

“The first gas production is expected from the Kinabalu NAG by the third quarter of this year,” he said.

The RM30.5 million permanent campus of KTC, located just across the SOGT, will be completed in the second quarter of this year. Currently, its trainees are trained at a temporary premises in Membakut Jaya, and have benefited 48 Sabahans.

Joseph said KTC augmented Petronas’ existing training efforts in collaboration with five institutions in the state, namely Institut Kemahiran Mara, Institut Latihan Perindustrian and Kolej Yayasan Sabah, all based in the state capital, as well as GiatMARA in Kimanis and Institut Teknikal dan Perdagangan in Papar.

“These efforts would help develop the skills and capabilities of Sabahans, provide the employment opportunities and support the growth of the oil and gas industry in Sabah,” he said.

He said all the projects are expected to create spin-off effects to further spur economic activities and employment opportunities, as well as provide chances for Sabah companies to participate.

Between 2009 and 2011, Petronas awarded 45 contracts worth RM1.07 billion to Sabah companies, of which over 20 state-based companies participated in SOGT and SSGP projects, Joseph said.

On another development, he said that Petronas has also been recruiting Sabahans to its workforce, adding that there are currently 1,588 Sabahans attached in Petronas, including 1,107 serving in Sabah and Labuan.

“Over the past three years alone, Petronas has recruited 514 staff members from the state,” he said.

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