Sabah Energy to Set up Malaysia's First Micro LNG Plant

State-owned Sabah Energy Corporation (SEC) is close to setting up a joint venture for construction of Malaysia’s first micro LNG plant in Kota Kinabalu Industrial Park (KKIP) in the state of Sabah, reported Borneo Post, a local newspaper.

The plant will be owned by a subsidiary company of SEC through a joint venture which will be finalised soon. All necessary approvals have been given by shareholders and the signing ceremony would be held once the joint venture terms are finalised accordingly.

The company believes it will be able to supply gas to wider set of customers in the form of LNG. The plant is expected to produce 35 tonnes of liquefied gas a day and would enable SEC to deliver natural gas to those areas which were previously inaccessible through its existing supply of compressed natural gas (CNG) and underground pipeline, Borneo Post reported.

Hari Raya Aidilfitri, the CEO of SEC, said CNG could only be supplied to customers who live within 70 kilometres from the CNG mother station in KKIP.

“We also plan to approach customers in Kota Kinabalu, who cannot be supplied with CNG (which requires large storage area), to be supplied with liquefied gas. With liquefied gas, we can reach customers in Kudat, Keningau, Beaufort, Ranau and so on,” he said.