KOTA KINABALU: The launch of the RM8.88 billion (USD2 billion) Oil and Gas, Energy Hub Project at the Sipitang Oil and Gas Industrial Park (SOGIP) is set to play a pivotal role in Malaysia’s energy and industrial strategy.
Chief Minister Datuk Seri Hajiji Noor said it would establish Sabah as a key hub in Southeast Asia’s energy sector.
“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,” he said.
The Chief Minister said the SOGIP development will strongly emphasise on environmental sustainability.
“As Malaysia moves toward reducing its carbon footprint, the integration of cleaner energy sources, such as LNG, plays a crucial role in the country’s energy transition strategy.
“Moreover, 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 at the launching ceremony of the Oil and Gas, Energy Hub Project held at the Sabah International Convention Centre (SICC) here today.
The project is a collaboration between Sabah Oil and Gas Development Corporation (SOGDC), which manages SOGIP and Gibson Shipbrokers Limited, a maritime, energy, and associated industries speciality company,.
To be done in two phases, the project would see the construction of a state-of-the-art port to support energy transportation and trade activities among others utilising 80 per cent local workforce.
Hajiji said the successful execution of the project will not only enhance Malaysia’s domestic economy but also support regional energy security and boost international trade.
“With strong support from both private sector partners and the government, SOGIP is anticipated to attract additional investments in energy infrastructure, technological advancements, and industrial expansion.
“As Malaysia continues to strengthen its presence in global energy markets, SOGIP will play a strategic role toward economic resilience, energy independence, and sustainable industrial growth,” he said.
Hajiji was also confident the project would offer many opportunities for employment, skills training, and community empowerment.
“In this regard, I have always stressed the importance of prioritising the employment of Sabahans in all projects and operations within the state. I want all industry players to comply with this fundamental requirement as a core principle of our commitment to local development,” he said.
He reiterated that the State Government’s seriousness was reflected in the establishment of the Sabah Local Content Council through SMJ Energy in May last year, which served as a collaborative platform for industry stakeholders to identify opportunities in enhancing capacity building for local content in the Oil and Gas industry.
“Through this platform, the State Government will mandate all stakeholders to invest in the training and development of Sabahans through short-term and medium-term programs to be executed in 2025,” he said.
“I wish to reaffirm the State Government’s commitment to progress and develop Sabah’s oil and gas industry. I am confident that through continued collaboration and mutual support, we can further strengthen the oil and gas industry in Sabah to drive greater economic prosperity for our state,” he said.
Deasoka
