December 15, 2011

Petronas LNG Terminal Project in Lahad Datu got fully supported

As reported by Bernama News on Dec 16, Petronas' plan to set up a liquefied natural gas (LNG) re-gasification terminal in Lahad Datu will not only solve power shortage in the district but also bring spin-off opportunities to it.

Assistant Minister to the Chief Minister, Datuk Hj Datu Nasrun Datu Mansur, said he was aware of the proposed Petronas mega project and people in Lahad Datu fully supported it.

He said the proposed terminal, which will enable LNG to be imported and regasified for supply to the Lahad Datu Power Plant, will also be a boon to the industrial sector in the district.

"Most importantly, the occasional power disruption in the district will definitely be solved once the project is completed, and is also good for the business sector," he added.

Nasrun, who is also state assemblyman for Lahad Datu, said the setting up of the two high impact projects was indeed very timely, especially after the government scrapped the plan to build a proposed RM2 million coal powered electricity station at Silam.

"At present, electricity supply is adequately distributed in most parts of Lahad Datu district, except for certain islands and some remote villages.

"The setting up of the Lahad Datu Power Plant and LNG regasification terminal, will definitely bring significant changes to Lahad Datu in terms of power stability," he told Bernama, here.

He also urged Petronas to consider supplying the LNG direct to consumers in Lahad Datu via gas piping, like what was being introduced in Bintulu, Sarawak.

"I'll be grateful if Petronas could also consider giving job opportunities to the locals, especially contractors when it embarks on the LNG terminal project," Nasrun said.

Petronas recently announced its plan to construct an LNG terminal in Lahad Datu, which will be connected to the Lahad Datu Power Plant. It will be jointly built by a Tenaga Nasional Berhad (TNB) consortium consisting of Petronas and a state entity.

Sabah's projected electricity requirement by 2020 is about 1,500 megawatt and the completion of the Kimanis and Lahad Datu Power Plants is expected to contribute an additional 600 megawatts.

The two Petronas multi-billion projects are expected to be completed in 2013 and 2015 respectively.

Meanwhile, Assistant Rural Development Minister, Datuk Haji Sairin Karno, said Petronas should not be "distracted" from carrying out its oil and gas activities in Sabah by negative comments.

"By and large, Petronas has done a good job (to develop the oil and gas industry in Sabah) and it should continue doing so, as the people and the state are also benefiting from the group's activities," he added.

Sairin, who is also Liawan state assemblyman, said it is normal for any important organisation like Petronas to come into public scrutiny, moreso after being successful in developing Sabah's oil and gas resources.

"We cannot deny that oil and gas has generated substantial revenue due to Petronas' involvement, which has in turn allowed us (Sabah) to receive petroleum royalties," he added.

According to Petronas, Sabah has received petroleum royalties of RM6.8 billion since 1976 while the group's total investment to develop the state's oil and gas industry is RM63.0 billion.

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