East Coast to get 300MW natural gas-powered plant

Finally conceding to what SAPP has been demanding for almost 3 years, the State government finally announced that a 300-megawatt (MW) natural gas-powered plant is set to take shape in the east coast of Sabah to replace the scrapped coal-fired Plant.

Industrial Development Minister Datuk Raymond Tan Shu Kiah said the state govemment was discussing with the national oil company, Petronas, and was close to obtaining a commitment to set up a Liquefied Natural Gas (LNG) terminal to supply power in the east coast of the state.

But Petronas rejected the State government's proposal for a pipeline on grounds of cost, insisting instead on shipping LNG from the Petronas LNG plant in Bintulu to the East coast of Sabah.

He said Petronas had explained that the LNG supply was cheaper than putting up a natural gas pipeline from Kimanis in the west coast of Sabah all the way to the east coast.

"It will be costly for a gas pipeline to be built between the east and west coasts as it has to cut across the Crocker Range," he said at the State Legislative Assembly yesterday.

Tan added that the LNG terminal would be located close to the deep water port in one of the east coast districts, possibly in Lahad  Datu, while the location of the natural gas-powered station would be decided by Sabah Electricity Sdn Bhd, a subsidiary of Tenaga Nasional Berhad.

"These projects must be ready by 2015 as the state will face a shortfall of 40 per cent in Power  supply," he said, adding that Petronas officials would be meeting chief Minister Datuk Seri Musa Aman soon to give a clearer picture of the plans.

"The LNG supply in the east coast would also help in boosting industrial needs of the PaIm oil Industrial Clusters of Sandakan and Lahad Datu, which are also developing its biomass energy.

"Sabah is set to tap about  one third of the 750 mln scf (standard cubic feet) per day of gas landing at the Kimanis terminal." said Tan.

Apart ftom providing gas to the east coast and Kimanis natural gas power stations, the gas would also be supplied to the new Sipitang oil and gas termlnal, "Not all the gas is going to be piped to Bintulu (Petronas LNG plant in Sarawak)," he said referring to local complaints that the gas tapped offshore of Sabah should be used for the develpment of ihe oil and gas industry.

He said Petronas had to send the gas to Bintulu to cover their investment in Sabah.

Quoted from The Borneo Post