April 21, 2016 [Bernama] - Plans are afoot to build an ammonia plant and the second oil storage terminal in Sabah. State Deputy Chief Minister Datuk Raymond Tan Shu Kiah said the state cabinet had accepted a recommendation from a petroleum company to build the largest gas to liquid plant in the Sipitang Oil and Gas Industry Park (SOGIP) costing between US$3 billion and US$5 billion.
He said the project would create 5,000 jobs during its construction phase and over 1,000 jobs when it is operational.
Tan, who is also state industrial development minister, said the plan would usher into a new era of robust oil and gas industry development in the coming years, thus turning Sabah into a world-class petrochemical hub.
On the Sabah Ammonia-Urea (Samur) project in SOGIP, he said it would mark the beginning petrochemical industry in the state.
“The Samur project is scheduled to commence commercial production in the third quarter of this year, producing 1.2 million metric tonnes per annum (MTPA) of granular urea and 740,000 MTPA liquid ammonia,” he said when winding up debate for his ministry at the State Assembly here today.
He said Samur has created 7,000 jobs during its construction phase, and over 400 employees would be hired when it is operational, of which 75 per cent would be Sabahans.
On the Sabah Biomass Industry Development Plan, which was launched by Prime Minister Datuk Seri Najib Tun Razak on Feb 25, he said it would spur the development of the industry in the Palm Oil Industrial Cluster (POIC) in Lahad Datu.
“The Lahad Datu POIC is expected to be able to effectively mobilise the palm biomass sector in the production of biochemical and other high-value bioproducts through a strategic partnership with the Malaysia Innovation Agency in the Prime Minister’s Department, Malaysia Bio-Tech Corporation and major employers in related industries,” he said.
He said the biomass collection centre, which was already operational, is expected to address a number of critical issues faced such as price mechanism and long-term supply contract and logistics.
Tan said the state government had recommended the development of the Kota Kinabalu Industrial Park in the 11th Malaysia Plan in the strive to create a Free-Trade Zone and Logistics Hub in line with the proposed Sepanggar Bay Container Port as a transshipment hub.
“Through these proposals, the Kota Kinabalu Industrial Park is expected to attract RM4 billion in investments and create 3,400 jobs,” he said.
