OIL, GAS & ENERGY SECTOR

Upstream/Midstream

EPP 1 : LAHAD DATU REGASIFICATION

TERMINAL (LD RGT)
DESCRIPTION

To develop a facilities to receive, store and vaporize

imported LNG with a maximum capacity of 0.76 MTPA
(up to 100 mmscfd) and supply the natural gas to the
Power Plant

lahad datu

Berth

LNG Storage Tank Jetty

(0.76 MTPA)

Key outcomes of the EPP / KPIs What needs to be done?

Vaporization Station • Availability of natural gas supply at east coast of Sabah including Sandakan, Lahad Datu • Construction period of LNG Storage Tank which is the critical path of the project (normally
and Tawau (also along the route) will take up to 24 months)
• Transfer of technology and knowledge to local manpower and contractors who are involved • Front End phase of a project, where activities are mainly focused towards project planning
with this project and contracting/bidding activities for the appointment of Frond End Engineering Design
• Spurring the economy along the pipeline Consultant expected in mid-October 2011
• Evaluate and finalize the land lease of the reclaimed land of the proposed site with POIC.
• Site Reclamation works is expected to start by Q1 2012

Key Challenges Mitigation Plan

• Transporting major equipment and bulk materials from Sandakan to Lahad Datu (~200km)
• Shortage of capable manpower due to simultaneous construction of LD power plant
• Available manpower are lack of re-gas terminal construction skills (special)
• Potential security threat with historical events of pirates attack towards workers and
equipment
• Coordination for safety and evacuation during emergency with local authorities
• Improvement of the road condition from Sandakan to Lahad Datu or consider for
permanent/temporary jetty at Lahad Datu
• Proper education planning to prepare and develop the skilled and semi skilled manpower
• Collaboration with state authorities to tighten the security along the coast lines

Upstream/Midstream

EPP 2 : SABAH O&G TERMINAL

(SOGT) AND SABAH - SARAWAK
PIPELINE (SSGP) DESCRIPTION

512 km Sabah Sarawak Gas Pipeline connects

Kimanis to Bintulu (Pipeline in Sabah: 91.24km).
A branch line will be constructed to cater for
SOGIP in Sipitang

Terminal to receive and process oil and gas

from off shore (Kinabalu, Gamusut, etc) in
Kimanis

Oil Terminal: 2.5 mboe

Gas Terminal: 1,250 mmscfd

Project Status

SOGT: On-going construction

SSGP: Land acquisition and pipe

construction

kimanis
Key outcomes of the EPP / KPIs What needs to be done?
• Availability of natural gas supply at SOGIP and spur the huge potential of petro-chemical • Continue with the construction
industry • Continue with land acquisition and networking with Land and Survey Department of Sabah,
• Transfer of technology and knowledge to local manpower and contractors who are involved UPEN Sabah and District Offices
with this project
• Spurring the economy along the pipeline

Key Challenges Mitigation Plan

• Acquisition of land for right of ways (ROW) • Collaboration with Land and Survey Department to speedup the large number of
• Shortage of capable manpower and local contractors documentations due to large number of private land owners
• Potential security threat manpower and equipment towards workers and equipment from • Proper education planning to prepare and develop the skilled and semi skilled manpower
unhappy squatters • Collaboration with state authorities to tighten the security along the coast lines
 OIL, GAS & ENERGY SECTOR

Upstream/Midstream

EPP 3 : GAS SEPARATION PLANT AT

KIMANIS (GSP)
DESCRIPTION

To design and built an LPG extraction plant

and its export facilities to enhance the value of
Sabah gas at Sabah O&G Terminal (SOGT)

Key outcomes of the EPP / KPIs

• Additional GDP of RM29,560 million to Sabah from
that sales of C3 and C4 on top of C1 and C2.
• This extension will help to expedite the growth of
KKIP
• Industries along the pipeline can also benefit from kimanis
the spin off from extension of the pipeline.

What needs to be done? Pipeline from Industries

• Feasibility Study: 3 months Offshore
• Detailed Feasibility Study: 9 months
• Basic Engineering Design: 12 months
• EPCC: 24 months
• Total duration: 4 years to complete

Key Challenges New Transmission /

• Choosing the compatible system for GSP to connect Distribution Pipeline
with SOGT system
• Laying the 75km pipeline from GSP at Kimanis to
Industries which mostly will be located at Kota
Kinabalu and SOGIP

Mitigation Plan
• Proper feasibility study on designing the GSP
• Collaboration effort between SEC, PETRONAS and
SOGT
Sabah State Authorities (i.e. Sabah Land and Survey
Department and UPEN Sabah)

GSP

SSGP
Sales will be
transmitted
Bintulu

DOWNSTREAM

EPP 4 : KIMANIS POWER PLANT

(300MW)
Kimanis Power Sdn Bhd

DESCRIPTION Capacity 300 MW

Natural Gas
Fuel
Kimanis Power Plant will address the (60 mmscfd)

immediate needs of electricity demand in Off-taker SESB

Sabah (especially in West Coast)

kimanis

Key outcomes of the EPP / KPIs What needs to be done?

• Creation of 415 jobs for Sabahan from top management to supporting staff during • Complete construction of site office by Q1 2012
operations and 2100 jobs during construction. Hence, transfer of technology and • Proceeds with construction once the land work completed
knowledge will take place to local manpower and contractors • Ensure the completion of SOGT project
• Additional 300 MW of cleaner and stable energy supply into SESB to preserve Sabah eco • Ensure the completion of SESB transmission facility upgrade
treasure
• Reduce the yearly lost from industrial losses RM4.59billion/per year due to power
interruption

Key Challenges Mitigation Plan

• Lengthy negotiation period on Power Purchase Agreement (PPA) • Pending MPRC discussion outcome
• Shortage of capable manpower and local contractors • Proper education planning to prepare and develop the skilled and semi skilled manpower

DOWNSTREAM
EPP 5 : LAHAD DATU POWER PLANT
(300MW)
DESCRIPTION
The fuel for the power plant will be LNG
The power plant and LNG re-gasification
plant are to be built in POIC Lahad Datu
Phase 3
lahad datu
DOWNSTREAM
EPP 6 : Sipitang Oil & Gas
Industrial Park (SOGIP)
DESCRIPTION
Phase 1 - SAMUR (1.25 mt/year urea
production) – 620 acres
To provide the necessary infrastructure
(basic road, drainage, water supply &
compound lighting) required for the
development of SAMUR
Phase 2 – Mitsui ( 1.0 mt/year ammonia
production) – 690 acres Labuan
To provide the necessary Infrastructure
(basic road, drainage, water supply &
compound lighting) required for the
development of ammonia plant
Phase 3 - Development of basic
infrastructure for 3,000 Acres of
Industrial Land
Phase 2 Development Plan
SOGIP
OIL, GAS & ENERGY SECTOR
LDPP
Capacity 300 MW
Natural Gas
Fuel
(60 mmscfd)
Off-taker SESB
Key outcomes of the EPP / KPIs
• Creation of 390 jobs for Sabahan from top management
to supporting staff during operations and 2737 jobs
during construction. Hence, transfer of technology
and knowledge will take place to local manpower and
contractors
• Additional 300 MW of cleaner and stable energy supply
into SESB to preserve Sabah eco treasure
• Reduce the yearly lost from industrial losses
RM4.59billion/per year due to power interruption
What needs to be done?
• Project consortium needs to Resolve land purchase/
lease matters by Dec 2011
• Resolve jetty building and ownership matters between
project consortium and POIC / Sabah Authorities by Dec
2011
• Project consortium needs to start the land works latest
by Q1 2012
• MLNG needs to secure the LNG import supplies from
international market by 2014
Key Challenges
• POIC policy not to sell sea front land and project owner
plan to purchase the land for jetty and port to lower
the project cost and ensure the security of long term
investment
• POIC policy for them to build and operate the jetty vs
project owner plan to self build and self operate the jetty
to reduce cost
• Lengthy negotiation period on Power Purchase
Agreement (PPA)
• Shortage of capable manpower and local contractors
Mitigation Plan
• Work on the agreed price for both parties whether on
selling/purchasing or leasing the land
• Speed up state government decision on the ownership of
the jetty
• Intervention from MPRC, state government into the
negotiation of PPA to speed up the decision
• Proper education planning to prepare and develop the
skilled and semi skilled manpower
Phase 1 Development Plan Phase 2 Development Plan
Key outcomes of the EPP / KPIs Key outcomes of the EPP / KPIs
• To accelerate Industrial development in Sabah • To accelerate industrial development in Sabah
• To create job opportunity and contribute to GDP
growth
• To create job opportunity and contribute to GDP
growth
• Designated area for oil and gas Industry • To make ammonia available at average of
• Cooperation and synergy with Brunei’s PMB 957,000 mt/year as raw feedstock to be used
development
• Synergy with Asean Supply Base (ASB) in
by various industries to produce products such
as acrylonitrile, capro-lactum, lsocyanae and
• Contribute to the local job market
ammonium nitrate.
• Contribute to the local job market.
• Technology transfer through joint venture with
Orica Limited (Australia)
What needs to be done?
• To provide basic infrastructure in the area What needs to be done?
(access road & water).
• Vendor development programme to be • To provide basic infrastructure in the area
SAMUR Project Site Phase 1 Development Plan
designed for the project. To have programme
for participants in order to acquire skills &
(Access road, water & electricity).
• Vendor development programme to be
knowledge beyond those required. designed for the project. To have programme
• Light and medium fabrication for participants in order to acquire skills &
• Integrated logistics centre knowledge beyond those required.
• Fully equipped logistics facility for storage,
transportation, freight forwarding, procurement,
Key Challenges
customs, immigration clearance, agency related
services • Lack of basic infrastructure and public amenities
• Supply base function: purpose-built base with such as road, drainage, water & electricity.
office space, workshops, warehouse complex • Identify new potential private sector to utilise
and open yard ammonia.
• Storage of OCTG, tubular and heavy equipment • Need of investment package to attract investors
• ROW for utilities
Key Challenges • Better road condition and port facilities to export
end products. Accommodation and commercial
• Identify new potential private sector to utilise facilities.
gas, ammonia and urea. • Guaranteed gas supply
• Need of investment package to attract investors
• ROW for utilities
• Better road condition and port facilities to export Mitigation Plan
end products. Accommodation and commercial • To construct basic infrastructures such as site
facilities formation, road, drainage & water reticulation.
Phase 3 Development Plan • To provide water supply - 20mld
Mitigation Plan • To provide electricity supply- 18 MW
• Provide 90mmscfd of gas
• To construct basic infrastructures such as road
& drainage.
• To provide water supply
 OIL, GAS & ENERGY SECTOR

Upstream/Midstream

EPP 7 : PIPELINE TO KKIP

DESCRIPTION

Extension of SSGP tapped from KKIP  

Kimanis end to KKIP 85  km  Extension  
• Distance: 85km Pipeline  
• Diameter: 18”
• Expected Completion: 2015
KK  
The extension will pass by
• Papar
• Lok Kawi Ppg  
• Penampang
• Kota Kinabalu
LK  
Expected completion: 2015
Propose  Extension  
Ppr  
Kimanis  

SSGP  

kimanis Key outcomes of the EPP / KPIs What needs to be done?

• With this extension of the pipeline, the secondary recovery of oil wells in ERB West field is
possible
• This extension will help to expedite the growth of KKIP as well as ensure the natural gas
supply security to the KKIP’s IPPs and small industrial users
• Industries along the pipeline can also benefit from the spin off from extension of the
pipeline
• Economic studies of the viability of the project by PGB and SEC
• Collaboration demand projected demand studies between SEC, PGB and KKIP
• Provision of ROW
• Syndication with Malaysia Gas Management (MGM) and PETRONAS Carigali Sdn Bhd
(PCSB) on the extra allocation of natural gas

Key Challenges Mitigation Plan

• Acquisition of land for ROW • Work together with JKR and Sabah Land Authorities to map out common utility corridor or
• Land acquisition for city gate stations tunnel
• No extra gas allocation • Work together with Sabah Land Authorities to assist in the acquisition of land in the
respective areas/districts for the construction of the city gate station
• Work with PETRONAS Malaysian Gas Management Unit to secure additional gas allocation