Sabah energy infrastructure to expand with increased gas supply and grid stability projects

Sabah's gas supply is projected to nearly double by 2030, rising from 700 million standard cubic feet per day (MMscfd) to 1,350 MMscfd. This growth will be driven by seven offshore development projects involving two international oil companies and four Malaysian firms over the next four years.

Chief Minister Hajiji Noor stated that these developments, coordinated through a partnership between SMJ Energy and PETRONAS, aim to meet increasing industrial and energy demands. Key drivers for gas demand include new power plants, the PFLNG3 floating liquefied natural gas facility, and manufacturing investments in the West Coast corridor and Labuan. In East Sabah, the Mutiara gas field cluster is identified to supply new power plants in the Sandakan Sawit Kinabalu Industrial Park. Plans also include converting the Batu Sapi power station from diesel to gas-based turbines.

To complement energy supply, Sabah Electricity (SE) is implementing strategic projects to stabilize the state's power grid. These include a 100MW Battery Energy Storage System (BESS) to increase capacity, particularly for East Sabah, and the continuation of the Sarawak-Sabah Grid Connection. Additionally, the first phase of the Southern Link Project, featuring a 60km line, has been launched to enhance grid reliability.