Sabah, Malaysia, is set to become a major player in the Southeast Asian energy sector with the launch of a significant RM8.88 billion (USD2 billion) Oil and Gas, Energy Hub Project at the Sipitang Oil and Gas Industrial Park (SOGIP). The project is poised to be a catalyst for economic growth, attracting investments and fostering collaboration in the energy industry.
KOTA KINABALU: Sabah aspires to become a major energy hub in Southeast Asia following the launch of an RM8.88 billion (USD2 billion) Oil and Gas, Energy Hub Project at the Sipitang Oil and Gas Industrial Park ( SOGIP ) here. Sabah Chief Minister Datuk Seri Hajiji Noor stated that this project will be pivotal in Malaysia's energy and industrial strategy.
'SOGIP will serve as a catalyst for further growth in the energy sector, which is crucial for Sabah's sustained economic growth,' he said during the launch of the Oil and Gas, Energy Hub Project held at the Sabah International Convention Centre (SICC) here, Tuesday (Feb 11). 'Most importantly, this project will open up more opportunities for collaboration, innovation, and development in the oil, gas, and energy sectors, which will benefit both the industry and local communities,' he added. Hajiji emphasized that the SOGIP development will strongly prioritize environmental sustainability, aligning with the government's initiative to reduce its carbon footprint and integrate cleaner energy sources such as liquefied natural gas. He explained that energy storage and distribution systems within SOGIP are being developed to support Malaysia's long-term renewable energy goals. By facilitating a steady supply of natural gas and other lower-carbon fuels, SOGIP can help bridge the transition from fossil fuel dependency to greater adoption of renewables, such as solar and wind power, in Malaysia's energy mix. The project is a collaborative effort between Sabah Oil and Gas Development Corporation (SOGDC), which manages SOGIP, and Gibson Shipbrokers Limited, a maritime, energy, and associated industries specialty company. To be executed in two phases, the project will involve the construction of a state-of-the-art port to support energy transportation and trade activities. It will utilize 80% local workforce. Hajiji stated that the successful implementation of the project will not only enhance Malaysia's domestic economy but also contribute to regional energy security and boost international trade. 'With strong support from both private sector partners and the government, SOGIP is anticipated to attract additional investments in energy infrastructure, technological advancements, and industrial expansion,' he said, adding that it will also offer job opportunities, skills training, and community empowerment. 'As Malaysia continues to strengthen its presence in global energy markets, SOGIP will play a strategic role toward economic resilience, energy independence, and sustainable industrial growth,' he said. He reminded investors to prioritize the employment of Sabahans in all projects and operations within the state and urged industry players to comply with this fundamental requirement. SOGDC chairman Datuk Seri Rahman Dahlan said the SOGDC has been tasked with developing the oil and gas industry in Sabah, and today, has received approximately USD2 billion worth of investments from countries such as Singapore, United Kingdom, Philippines, Japan, and Saudi Arabia. 'This is exciting because it will place Sabah as a forward storage hub for major Middle Eastern producers. So, for example, if they want to sell their oil to China, Japan, or South Korea, they do not have to wait for the supply from Middle Eastern countries,' he said. This project is not just an industrial achievement but a transformative platform for SOGIP and Sabah in terms of economic growth, he concluded
ENERGY HUB OIL AND GAS SOGIP SABAH MALAYSIA INVESTMENT SUSTAINABILITY RENEWABLE ENERGY
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