KOTA KINABALU: State-owned Sabah Energy Corporation (SEC) reached a significant milestone with the official launching of the Micro Liquefied Natural Gas (LNG) facilities at the Kota Kinabalu Industrial Park (KKIP), yesterday.
The SEC majority-owned Micro LNG facilities is purpose-built and developed to meet the energy requirements of industries, enterprises and commercial consumers, such as palm oil refineries, hotels and resorts and shopping malls throughout Sabah.
These consumers will benefit from cleaner and cheaper fuel and at a competitive price. This will translate to cost savings and reduce the cost of doing business in Sabah.
When the third phase of SEC’s natural gas distribution project was launched in 2016, it was to build, operate and own a 35-MT Micro LNG facilities.
The official launching yesterday was officiated by Sabah Chief Minister Datuk Seri Panglima Shafie Apdal.
He said the project demonstrated the ability of a local government linked company (GLC) to collaborate successfully with Zhangjiagang Furui Special Equipment Company Limited, a multinational company from China.
Zhangjiagang Furui,a renowned LNG specialist, is the technology provider and co-investor in this project.
“I would like to ensure all international investors that the Sabah government is business-friendly, and this is apart from the fact that our people are known to be very cordial. Sabah is every investor’s dream.
“I welcome the fact that our investors from China are bringing to Sabah the necessary technology to assist in enhancing the human capital development in our state. Chinese companies are known to be diligent. Chinese work etiquette is also a no-nonsense one as they strive for the optimum. We can indeed take a page or two from their book,” he said.
Meanwhile, chief executive officer of SEC, Datuk Harun Ismail, stated that SEC Gas had signed LNG Sales and Purchase Agreements with five palm oil refineries in East Coast Sabah. These new customers are in Sandakan, Lahad Datu and Kunak. The first delivery to Lahad Datu was made on March 16, and there was no hiccup in the process.
SEC has been supplying natural gas to consumers in Labuan and KKIP since 1985 and 2003 respectively, It was the company’s first phase of distribution of natural gas to provide energy solutions which are cheaper and cleaner to potential users in KKIP via a network of underground gas pipelines that connect to the consumer’s premises.
In 2012, SEC launched its second phase of distribution of natural gas called the Virtual Pipeline System (VPS) using Compressed Natural Gas (CNG) for consumers who did not have access to natural gas pipeline infrastructure and/or located further from the gas pipeline in KKIP.
The CNG customers are located within a radius of 70 KM from SEC’s CNG Mother Station in KKIP. CNG is supplied using special purpose CNG tanks that are transported on trucks.
With the completion of the third phase launched yesterday, SEC is now able to supply cleaner and cheaper natural gas to an even broader spectrum of industries throughout Sabah in line with its mission to be “Your Natural Gas Provider”.