Sabah Unveils RM8.88 Billion Oil and Gas Energy Hub Project to Strengthen Regional Position

Representational image. Credit: Canva

Sabah is poised to strengthen its position as a key energy hub in Southeast Asia with the launch of an RM8.88 billion oil and gas energy hub project at the Sipitang Oil and Gas Industrial Park (SOGIP).

Chief Minister Datuk Seri Hajiji Noor highlighted that this project will drive collaboration, innovation, and growth within the oil and gas sector, benefiting both industry players and local communities. Speaking at the launch of the Oil and Gas Energy Hub Project at the Sabah International Convention Centre (SICC) today, he emphasized the project’s potential to position Sabah as a significant player in the regional energy industry.

“By facilitating a steady supply of natural gas and other lower-carbon fuels, SOGIP can play a crucial role in Malaysia’s transition towards a more sustainable energy mix, integrating renewable energy sources such as solar and wind power,” said Chief Minister Noor. “As Malaysia continues to strengthen its presence in global energy markets, SOGIP will play a strategic role in driving economic resilience, energy independence, and sustainable industrial growth,” he added.

This strategic development is a joint effort between the Sabah Oil and Gas Development Corporation (SOGDC) and Gibson Shipbrokers Ltd., and will be carried out in two phases. The plan includes the construction of a state-of-the-art port focused on energy transportation and trade.

Chief Minister Noor expressed confidence that, with strong support from private sector partners and the government, SOGIP will draw substantial investments in energy infrastructure, technological innovation, and industrial growth. He also reaffirmed the state’s commitment to local development, noting the establishment of the Sabah Local Content Council by SMJ Energy in May last year. The council provides a platform for industry stakeholders to boost local capacity within the oil and gas sector.

Additionally, Chief Minister Noor announced that all stakeholders will be required to invest in the training and development of Sabahans through both short-term and medium-term programs set to roll out this year.

 

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