KOTA KINABALU, Feb 11 — Sabah aims for an RM8.88 billion project at the Sipitang Oil and Gas Industrial Park (SOGIP) to catapult the state into becoming a major oil and gas energy hub for the region.
Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor said the project would establish Sabah as a key hub in South-east Asia’s energy sector.
The project is a collaboration between the Sabah Oil and Gas Development Corporation (SOGDC), which manages SOGIP, and Gibson Shipbrokers Limited, a company specialising in maritime, energy, and related industries.
The partnership aims to construct a state-of-the-art port to support energy transportation and trade activities, among other things, while utilising an 80 per cent local workforce.
“SOGIP will serve as a catalyst for further growth in the energy sector, which is crucial for Sabah’s sustained economic growth. Most importantly, this project will open up more opportunities for collaboration, innovation, and development in the oil, gas, and energy sectors, which will benefit both the industry and local communities,” Hajiji said.
He was speaking at the launch ceremony of the Oil and Gas, Energy Hub Project held at the Sabah International Convention Centre (SICC) here today.
Hajiji added that the successful execution of the project will not only enhance Malaysia’s domestic economy but also support regional energy security, boost international trade, and advance its sustainable energy ambitions.
“The energy storage and distribution systems within SOGIP are being developed to support Malaysia’s long-term renewable energy goals.
“By facilitating a steady supply of natural gas and other lower-carbon fuels, SOGIP can help bridge the transition from fossil fuel dependency to greater adoption of renewables, such as solar and wind power, in Malaysia’s energy mix,” he said.
SOGDC chairman Datuk Seri Abdul Rahman Dahlan said that international investors from Singapore, the United Kingdom, Philippines, Japan and Saudi Arabia have been coming in.
“This project is exciting because it will place Sabah as a forward storage hub for major Middle Eastern producers. So, if they want to sell this oil, this gas to China, Japan, Korea, people don’t have to wait for the oil to come from the Middle East.
“They can keep it here in Sabah and then that will have an added advantage in terms of transportation time to China. So, they will be better positioned to sell their product, molecules, to China, Japan, South Korea, from here which is relatively cheaper than Singapore, cheaper than Pengerang,” he said.
The project is currently at its design stage.
