Petronas Enters Agreement with Sabah Energy to Supply Natural Gas Supporting Steel Industry
Sunday, 2nd March 2025 by Fatma Ahmed
Introduction to the Agreement
In a significant move to bolster industrial and economic growth in the region, PETRONAS, through its Malaysia Petroleum Management (MPM) division, has entered into a strategic partnership with Sabah Energy Corporation Sdn Bhd (SEC). The agreement formalizes the supply of an additional 104 million standard cubic feet per day (mmscfd) of natural gas to SEC, bringing the total supply to a robust 370 mmscfd.
Impact on the Steel Industry and Sustainable Practices
This increase in natural gas supply is aimed at addressing the growing energy needs of Sabah’s industrial sector, particularly the steel industry. SEC will allocate 150 mmscfd of the total volume to Esteel Enterprise Sabah Sdn Bhd, a company focused on steel production. This allocation will not only aid in boosting production but will also support Esteel’s efforts in adopting greener and more sustainable practices.
Official Witnessing of the Agreement
The agreement was officially witnessed by the Chief Minister of Sabah, Datuk Seri Panglima Haji Hajiji Haji Noor, emphasizing the importance of this collaboration in strengthening Sabah’s economic and industrial sectors. By securing an additional energy source, this deal also contributes to the region's energy security and enables future growth in vital industries such as power generation and manufacturing.
Key Figures and Stakeholders Involved
PETRONAS was represented by Anuar Ismail, Senior General Manager of MPM’s Integrated Hydrocarbon Management. Sabah Energy Corporation (SEC) was represented by CEO Datuk Adzmir Abdul Rahman. The partnership aligns with the broader vision of both parties to foster industrial growth, ensure sustainable energy supply, and elevate Sabah's economic profile.
Commitment to Sustainable Energy Solutions
Datuk Ir. Bacho Pilong, Senior Vice President of MPM, emphasized the importance of sustainable energy solutions. He remarked, “This agreement underscores PETRONAS’ unwavering commitment to provide reliable energy solutions that contribute to Sabah’s growth while supporting more sustainable energy use.” This reflects PETRONAS’ long-term vision of responsible energy management and sustainable development.
Remarks from Sabah's Chief Minister
In his address, Datuk Seri Panglima Hajiji Noor highlighted the significance of this collaboration, noting that the agreement marks a pivotal step towards achieving Sabah’s long-term development goals. He stated, “This agreement promotes industrial growth, energy security, and creates new opportunities for driving Sabah’s progress.” The Chief Minister's remarks underscore the importance of partnerships that drive regional development and ensure that energy needs are met sustainably.
Key Takeaways:
• Agreement Overview: PETRONAS has signed an agreement with Sabah Energy Corporation to supply an additional 104 mmscfd of natural gas.
• Total Supply Volume: The total natural gas supply to SEC now stands at 370 mmscfd.
• Steel Industry Focus: 150 mmscfd of the supply will be allocated to Esteel Enterprise Sabah Sdn Bhd, supporting steel production and sustainability.
• Industrial and Energy Growth: The agreement strengthens Sabah's industrial and energy sectors, contributing to economic and power generation needs.
• Commitment to Sustainability: PETRONAS emphasizes its role in supporting more sustainable energy use in Sabah.
• Official Representatives: The agreement was witnessed by Sabah's Chief Minister, with key figures from PETRONAS and SEC involved in the partnership.
• Future Prospects: The agreement marks a milestone in Sabah’s long-term development and energy security goals.
