Malaysian Sabah-Sarawak gas pipeline to start by January

Oct 07, 2013 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 CEO Zakaria Kasah said the construction of the 512km pipeline has been progressing smoothly and is now in the final stage of implementation. « By January it will start transporting gas and its capacity will be increased gradually, » he said at a question and answer session with journalists from Sarawak and Sabah after briefing on MNLG Group’s current and future directions at the Petronas LNG Complex here on Friday. Asked whether Petroliam Nasional Bhd (Petronas) plans to build a LNG plant in Sabah, Zakaria said: « To build new facilites at a new location needs about US$4 billion, and looking at that cost, the SSGP provides a better option for Petronas in terms of economic viability. » Zakaria said the 276ha 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. He said as of today MNLG has delivered a total of 8,126 consignments with 62% of LNG exported to Japan, 17% to South Korea, 12% to Taiwan and 9% to China. He said Petronas will have the world’s first floating LNG facility scheduled for deployment in 2015. The facility is expected to produce 1.2 MTPA and operate at Kanowit gas field, 180km offshore Bintulu. Statistics from the Malaysian External Trade Development Corp showed that last year, LNG earned the country a revenue of RM59.4 billion, contributing 7.9% of the country’s total exports and 53.8% of Sarawak’s gross exports.