Putrajaya Eyes Lucrative Sabah Port
Petronas Pipes Gas to Sabah Terminal
be given opportunities
and priorities in any
federal project.
Speculations are rife
here that experienced
ports handlers from
the peninsula with
‘direct connections’
to Putrajaya are
aiming to take over
operations of Sabah’s
main west-coast port
– Sepanggar Port, the
last jewel in the state’s
crown.
Industry sources told
FMT that the federal
government is looking
at the possibility of
getting big handlers
from Klang Port to
expand to Sabah
ostensibly for their
experience, expertise
and efficiency which
will help raise the
profile of Sepanggar
Port internationally.
The planned move
is said to be related
to the realisation in
the peninsula that
the cabotage policy
is unsustainable after
becoming a major
sticking point in
federal-state relations.
“When the federal
government does
this, it ensures there
already is strategic
business alliances
developed as ports’
business is a big
business and the
big players would
always want that their
interests protected
once Sabah ports
develop.
“With the cabotage
policy liberalised,
this will mean Sabah
ports like Sepanggar
would become the
next big hub for
container ships and
those with interests
will not ignore such an
opportunity,” said one
source.
The cabotage policy
stipulates that foreign
container ships need
to call at Klang Port
first ensuring that
all goods bound for
Sabah and Sarawak
are off-loaded there
and reloaded on to
Malaysian vessels thus
incurring an increase
in handling charges
and contributing to a
hefty increase in the
prices of goods in the
two state.
According to industry
sources, negotiations
could well be under
way between all the
stakeholders to find
a way to ensure the
interested parties do
not suffer losses when
the cabotage policy
ends.
“If things are on
schedule, we shall see
bigger allocations for
Sabah ports especially
Sepanggar Port in the
subsequent federal
budgets starting from
next year,” the source
said.
The source added that
it is “normal” for big
players in peninsular
with links to the
federal leadership to
Both sides are
expected to announce
their intentions to
establish strategic
port alliances to
coincide with the
announcement to
abolish or further
liberalise the
unpopular cabotage
policy.
When this is
announced it will see
Sabah lose ‘control’
over yet another utility
system. Already oil, air,
road and electricity
are with the federal
government .
Sepanggar Port
became the main
container port in
the last decade after
most sea traffic was
directed away from
the Kota Kinabalu
Port, formerly known
as Jesselton Harbour,
which has now
become the main
anchorage for cruise
ships and similar
vessels.
The relocation of
container ships to
Sepanggar in 2007
paved the way for the
development of the
old port area into a
shopping and touristrelated business
district.
The Sepanggar
Port project, on the
other hand, opened
up the area to the
development of a
container terminal,
a naval base, an oil
terminal, an industrial
park and allowed
institutes of higher
learning such as
Universiti Teknologi
MARA (UiTM) and
the Kota Kinabalu
Polytechnic among
others to build
campuses there.
Sabah Oil and Gas Terminal (SOGT) in Kimanis
Petronas has begun
piping natural gas
into the RM3.8 billion
Sabah Oil and Gas
Terminal (SOGT) in
Kimanis, marking an
important milestone
in the industry.
With an initial
flow of 65 million
standard cubic feet
per day (MMSCFD)
from the Kinabalu
Non-Associated
Gas field southwest
of the state via a
120km underwater
pipeline since
Monday, it was part
of the commissioning
process for the
terminal.
The commissioning
process will put to
test and ensure
the systems and
components at
the terminal are
running according
to specifications and
requirements before
it starts commercial
operations.
Once fully
operational, the
SOGT, located 65km
from here, will
have the capacity
of 260,000 barrels
per day (bpd) of oil
and 1,250 mmscfd
of natural gas, said
a statement from
Petronas Sabah and
Labuan Regional
office.
It is the biggest
integrated terminal
in the country with
the ability to receive,
handle and export
oil and gas produced
offshore.
It will position
the state as an
onshore oil and gas
hub in the region,
complementing the
operations of the
existing Sabah Gas
Terminal, the Labuan
Crude Oil Terminal
and the Labuan Gas
Terminal.
Sabah branch
Malaysian Malay
Chamber of
Commerce chairman
Datuk Ag Buhtamam
Ag Mahmun
yesterday said the
move was a positive
development for the
country.
“The SOGT and
other key oil and
gas projects in the
state are part of the
national agenda to
bring more progress.
“To see it up an @