Melanie is doubtful of Petronas' assurance

Source : Daily Express 15/05/2010

Kota Kinabalu: The Federal Government through Petronas ought to ensure adequate supply of natural gas from the oil and gas terminal at Kimanis to generate energy, which is crucial to development in Sabah.

Luyang Assemblywoman Melanie Chia said that adequate supply of natural gas is crucial to ensure that the proposed development in the State could take off, not to mention development of the oil and gas downstream industries, which can generate greater employment opportunities and spur economic development.

The SAPP Wanita Chief said this in response to Plantation Industries and Commodity Minister Tan Sri Bernard Dompok's recent statement supporting the State Government's move to develop Kimanis and Sipitang into oil and gas towns.

Dompok said that the Federal Cabinet had instructed Petronas to give priority to Sabah if the State required the resources.

While noting that there was a guarantee that no gas will be transported to Sarawak through the Kimanis-Bintulu pipeline if there was a need (for gas) here, Dompok said, therefore, the State Government have to look at the infrastructure for the utilisation of gas.

He also revealed that the State Government had already received a written commitment from the national oil company assuring compliance.

Nonetheless, Melanie was doubtful of Petronas's assurance.

"Is Petronas truly committed to giving the natural gas we require for our development? Is the Federal Government committed to its promise to give priority to Sabah for our oil and natural gas resources requirement?" she asked.

She feared that KKIP Sdn Bhd, a State GLC, would fail if the Sabah Government, in upholding Sabah interest, is unable to assist them to solve problems related to adequate supply of natural gas for energy intensive industries.

She pointed out that State Minister of Industrial Development Datuk Raymond Tan Shu Kiah had announced that KKIP Sdn Bhd needed 42 million cubic feet of natural gas daily and electricity supply of 354 MW for a proposed solar glass manufacturer.

KKIP Sdn Bhd has proposed to sign a commitment to investor, the Sun Bear Polar Sdn Bhd which wanted to build a RM5.3 billion plant to produce solar glass panels with silica sand from northern Sabah.

"The investment would fail if the State Government is unable to help to ensure adequate natural gas supply by Petronas É there must be a firm commitment by Petronas," Melanie said.

"If the State Government is not able to secure this supply commitment from Petronas, other potential investors either local or foreign would also not come to Sabah."

She said that if the proposed signing with Sun Bear Polar failed, Sabah would lose the RM5.3 billion investment which could potentially create 1,082 employment opportunities, development of supporting industries and the development of the small and medium enterprises (SMEs), and income from land revenue, among others.

She also urged the Government to update the people on the status of the Sun Bear investment as to whether it is going ahead or not, and whether adequate natural gas is made available for Sabah industrial development, including Sun Bear.