RM8.88bn project underway to establish Sabah as a key hub in Southeast Asia’s energy sector

In addition to its environmental goals, the project will provide valuable job opportunities and skills training for Sabahans.

A major new project in Sabah aims to establish the state as a key hub in Southeast Asia’s energy sector. The RM8.88bn Oil and Gas, Energy Hub project, which will be developed at the Sipitang Oil and Gas Industrial Park (SOGIP), is expected to drive economic growth and strengthen Malaysia’s position in global energy markets.

This large-scale project will be rolled out in two phases, including the construction of a new, modern port to handle energy transportation and trade. This collaboration is between Sabah Oil and Gas Development Corporation (SOGDC) and Gibson Shipbrokers Limited.

Datuk Seri Panglima Haji Hajiji Haji Noor, Chief Minister of Sabah, pointed out that the project will create more opportunities for the industry and local communities. "SOGIP will serve as a catalyst for further growth in the energy sector, which is crucial for Sabah's sustained economic growth," he said.

"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."

One of the project’s core goals is environmental sustainability. With the country aiming to reduce its carbon footprint, the focus is on incorporating cleaner energy sources such as liquefied natural gas (LNG). The new energy storage and distribution systems at SOGIP will also help the country move toward a future where renewable energy, such as solar and wind power.

In addition to its environmental goals, the project will look to provide valuable job opportunities and skills training for locals. The chief minister emphasised that the state government is keen on ensuring that Sabahan workers are prioritised for these jobs, which will help build long-term expertise in the oil & gas industry.

Datuk Seri Panglima Haji Hajiji said: "I have always stressed the importance of prioritising the employment of Sabahans in all projects and operations within the state."

He expressed his commitment to progressing and developing Sabah's oil & gas industry, stating that through continued collaboration and mutual support, the industry could be further strengthened to drive greater economic prosperity for the state.

Lead image / Ketua Menteri Sabah Official Website