Sabah to receive 40% share of floating gas facility project

Sabah is poised to receive a significant 40% share of a floating liquefied natural gas (FLNG) facility project, marking a substantial development in the state's economic landscape. This comes after successful negotiations and a strong collaborative effort between the Sabah state government and the federal administration, according to Chief Minister Datuk Seri Hajiji Noor.

The agreement with Petronas, expected to be finalized within months, will grant Sabah a substantial stake in the offshore gas resources. "We have successfully reached an agreement with Petronas, and very soon, perhaps within these few months, we will sign an agreement where we will get 40 percent of the floating gas in Sabah," Hajiji Noor announced.

He further elaborated that Petronas already operates an oil and gas field in Sandakan, and this new development will add another 20% share for the state in that area. Hajiji Noor highlighted that the positive relationship between the state and federal governments yields numerous benefits for Sabah, particularly in enhancing the state's participation in strategic economic sectors.

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We have successfully reached an agreement with Petronas, and very soon, perhaps within these few months, we will sign an agreement where we will get 40 percent of the floating gas in Sabah.

Sabah's pro-investment policies have also attracted considerable attention from foreign investors, with nearly 40 foreign diplomats and high commissioners meeting with the Chief Minister in the past five years. They expressed interest in the state's business-friendly approach, which is expected to propel Sabah's growth. Additionally, existing industrial parks like the Kota Kinabalu Industrial Park (KKIP) and Sipitang Oil and Gas Industrial Park (SOGIP) are experiencing rapid development. The state government is actively pursuing the expansion of industrial areas, including the Lahad Datu Palm Oil Industrial Cluster (POIC) and blue economy-based industrial parks.

In parallel, the state government is committed to the development of the Kalabakan district, aiming for balanced and rapid progress. Plans include the construction of Kalabakan New Town across 404.69 hectares and a Customs, Immigration, and Quarantine (CIQ) complex at the border, along with road infrastructure connecting Kalabakan to the Indonesian border.

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Almost 40 foreign diplomats or high commissioners have come to meet me in the last five years. They are interested in our pro-investor policies.