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A logo of a Petronas fuel station is seen against a darkening sky in Kuala Lumpur, Malaysia February 10, 2016. — Reuters pic
A logo of a Petronas fuel station is seen against a darkening sky in Kuala Lumpur, Malaysia February 10, 2016. — Reuters pic

KOTA KINABALU, April 22 — Petroliam Nasional Bhd (Petronas) and Sabah Oil and Gas Development Corporation Sdn Bhd (SOGDC) has signed a memorandum of understanding (MoU) to build Sabah’s first and largest near-shore floating liquefied natural gas (LNG) facility, known as ZLNG.

Deputy Chief Minister and State Industrial Development Minister Datuk Joachim Gunsalam said the ZLNG project with an estimated investment value of RM8.8 billion would be located at Sipitang Oil and Gas Industrial Park (SOGIP).

“Petronas and SOGDC will collaborate and cooperate in realisation of the project that includes SOGDC’s support and commitment to assist Petronas in securing all necessary approvals, permits and/or utilities as SOGIP developer,” he said in a statement today.

The MoU was signed by Petronas vice president LNG assets, gas business Abang Yusuf Abang Puteh and Sabah Industrial Development Ministry secretary, who is also SOGDC director, Thomas Logijin and witnessed by Joachim.

Joachim said the MoU would strengthen the existing collaboration between Petronas and SOGDC towards materialising the project, which is currently under the front-end engineering and design (FEED) stage and targeted to complete the final investment decision (FID) at the end of this year.

He said the MoU would also unlock potential future businesses such as tank regional distribution and bunkering and potentially provide return to participating parties and expand LNG virtual pipeline system (VPS) in Sabah.

“SOGDC is actively engaging with local industry players and contractors that provide services like mechanical and electrical services, health and safety, offshore and onshore maintenance and upstream services and other related services.

“Based on the engagement with the local contractors in Sabah recently, local contractors are keen to support SOGDC as the anchor for developing the local Sabahan contractors for projects within SOGIP to not only to grow but to safeguard their interest while providing services and solutions to their clients,” he added. — Bernama

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