Trans-Sabah Gas Pipeline Project: No Going Ahead
Cancellation of the Project
The Trans-Sabah Gas Pipeline (TSGP) project, which was initially initiated in 2016, has been cancelled again by the government. This decision was made in 2018, but it was revived in 2021. Recently, Economy Minister Rafizi Ramli announced that the project will not proceed.
Reasons for Cancellation
The project was cancelled in 2018 due to concerns over its high cost and lack of progress. It was discovered that 88% of the cost had been paid out, while only 13% of the work had been completed. The government cited its fiscal position as the reason for the cancellation.
Handover of Gas Supply Regulatory Power
The government has now handed over the gas supply regulatory power to the state government of Sabah, effective January 10, 2023. This move has made it unnecessary to proceed with the TSGP project.
Support for Gas and Electricity Sector Development
The federal government is committed to supporting the development of the gas and electricity sector in Sabah. The Minister of Economy works closely with the Sabah economic planning unit and the Energy Commission of Sabah to draft Sabah’s development agenda through the formulation of national economic development policies under the 13th Malaysia Plan.
History of the Project
The RM4.06 billion TSGP project was initiated in 2016 under the Barisan Nasional government. It involved laying 662km of gas pipelines from the Sabah oil and gas terminal in Kimanis on the state’s west coast to the east coast districts of Sandakan and Tawau.
Previous Revival of the Project
The project was revived in 2021, with further negotiations carried out with the original company awarded the project to decide on the direction of the pipeline. However, it appears that this revival has been cancelled, and the project will not proceed.
FAQs
- Q: Why was the TSGP project cancelled?
A: The project was cancelled due to concerns over its high cost and lack of progress. - Q: What is the current status of the project?
A: The project has been cancelled again, and the government does not intend to proceed with it. - Q: What is the future of the gas and electricity sector in Sabah?
A: The federal government is committed to supporting the development of the gas and electricity sector in Sabah, and is working closely with the state government and other stakeholders to achieve this goal.