Monday, May 20

Sabah-Sarawak Gas Pipeline to start operating by January 2014


BINTULU: The RM4.6 billion Sabah-Sarawak Gas Pipeline (SSGP) will start transporting gas from Kimanis, Sabah to the liquified natural gas (LNG) complex in Bintulu, Sarawak by January 2014. MNLG managing director and chief executive officer Zakaria Kasah said the construction of the 512km pipeline has been progressing smoothly and is now in the final stage of implementation.

“We are expecting to flow the gas by January next year from Sabah, and it will gradually increase the flow of gas into the plant here in Bintulu,” he said during a media briefing on MNLG Group’s current and future directions at the Petronas LNG complex yesterday.

Meanwhile, Zakaria highlighted that the Petronas Train 9 Sdn Bhd’s progress is on track and set to be completed by 2016.

Currently, MLNG is also working on eight other projects incluinge the Marlin Project, MLNG Boiler rejuvenation project, MLNG Dua rejuvenation project, carbon dioxide removal capacity restoration project, MLNG new boiler project, Rose project and industry effluent treatment system upgrade.

When asked whether Petronas plans to build a LNG plant in Sabah, Zakaria said to invest on a new plant at a new location, it would need about US$4 billion, and from a commercial point of view, it is not economically viable.

Zakaria said the 276 hectare Petronas LNG complex here will increase its production capacity from the current 25.7 million tonnes per annum (MTPA) to 29.8 MTPA by 2016.

As of yesterday, MNLG has delivered a total of 8,126 cargoes worldwide, with 62 per cent of LNG exported to Japan, 17 per cent to South Korea, 12 per cent tom Taiwan and nine per cent to China.

He said Petronas will have the world’s first floating LNG facility scheduled for deployment in 2015.

Statistics from the Malaysian External Trade Development Corporation showed that for the whole 2012, LNG contributed a revenue of RM59.4 billion for Malaysia, making up 7.9 per cent of the country’s total exports and 53.8 per cent of Sarawak’s gross exports in particular.