Sabah govt to acquire 25% equity in US$3.1bil Petronas facility

Sabah govt to acquire 25% equity in US$3.1bil Petronas facility

This follows the signing of an agreement between the state-owned SMJ Energy and Petronas for the stake in the ZLNG facility in Sipitang today.

oil rig petronas
Sabah chief minister Hajiji Noor said the partnership is part of its efforts to ensure the state’s long-term development goals and to promote industrial growth and energy security. (AFP pic)
PETALING JAYA:
The Sabah government, through SMJ Energy Sdn Bhd (SMJE), will be acquiring a 25% equity in the US$3.1 billion (RM13.17 billion) nearshore floating liquefied natural gas (ZLNG) facility in Sipitang.

This follows the signing of a heads of agreement between SMJ Energy and Petronas at the Malaysia Petroleum Club today.

Chief minister Hajiji Noor said the partnership is part of the efforts by the state government to ensure Sabah’s long-term development goals, promoting industrial growth and energy security, as well as creating new opportunities to drive the state’s progress.

“The ZLNG facility, with a capacity of two million tonnes per annum (MTPA), represents a significant addition to Malaysia’s LNG landscape.

“Positioned nearshore in Sipitang, the facility currently under construction is expected to commence operations in the second half of 2027.

“This project complements Sabah’s growing LNG footprint, in addition to two other floating LNG facilities, PFLNG1 (1.2 MTPA) and PFLNG2 (1.5 MTPA), that are currently operating in Sabah waters,” the chief minister’s department said in a statement today.

The Sabah government also said it intends to acquire a 40% participating interest in PFLNG1 through SMJ Energy, with due diligence targeted to begin in the second half of 2025.

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