The RM4.6 billion Sabah-Sarawak Gas Pipeline (SSGP) will start transporting gas from Kimanis, Sabah to the liquified natural gas (LNG) complex in Bintulu, Sarawak by January 2014.

MNLG managing director and chief executive officer Zakaria Kasah said the construction of the 512km pipeline has been progressing smoothly and is now in the final stage of implementation.

“By January it will start transporting gas and its capacity will be increased gradually,” he said at a question and answer session with journalists from Sarawak and Sabah after briefing on MNLG Group’s current and future  directions at the Petronas LNG Complex in Bintulu today.

Asked whether Petronas plans to build a LNG plant in Sabah, Zakaria said: “To build new facilites at a new location needs about US$4 billion, and looking at that cost, the SSGP provides a better option for Petronas in terms of economic viability.”

Zakaria said the 276ha Petronas LNG complex in Bintulu will increase its  production capacity from the current 25.7 million tonnes per annum (MTPA) to 29.8 MTPA by 2016.

He said as of today MNLG has delivered a total of 8,126 consignments with 62 percent of LNG exported to Japan, 17 percent to South Korea, 12 percent to Taiwan and nine percent to China.

He said Petronas will have the world’s first floating LNG facility scheduled for deployment in 2015.

Based on the Petronas website, the facility is expected to produce 1.2 MTPA and operate at Kanowit gas field, 180km offshore Bintulu.  

Statistics from the Malaysian External Trade Development Corporation show from January to December 2012 LNG earned the country a revenue of RM59.4 billion, contributing 7.9 percent of the country’s total exports and 53.8 percent of Sarawak’s gross exports.

- Bernama