Malaysia to develop Sabah petrochemical industry

07 November 2008 11:34  [Source: ICIS news]

SINGAPORE (ICIS news)--Malaysia will develop a petrochemical industry in Sabah to tap into feedstock from the natural gas pipeline being developed in the northern Borneo region, a source within a government institution said on Friday.

“They are going to set up a petrochemical industry in Sabah and also a natural gas pipeline,” said the source, referring to the recent Malaysian federal government decision to develop a natural gas pipeline from Sabah to Sarawak and set up a petrochemical industry.

The 500-kilometre natural gas pipeline will run from Kimanis in Sabah to Bintulu in Sarawak and is owned by state-owned energy major Petronas.

When contacted, a Petronas spokesman said the natural gas pipeline was an ongoing project as part of the Sabah Oil and Gas Terminal (SOGT) since February 2007, but had no information on the petrochemical industry development plans.  

The Sabah Oil and Gas Terminal (SOGT) under development by Petronas will be able to receive, store and export up to 300,000 bbl/day of crude oil as well as process, compress and transport 1bn cubic feet/day of natural gas per.

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By: Leon Toh
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