Malaysia's Petronas, Sabah state launch masterplan for gas development

KUALA LUMPUR (Reuters) - Malaysia's state oil firm Petronas and the resource-rich state of Sabah on Tuesday launched a masterplan to develop the state's natural gas resources, including the construction of a liquefied natural gas (LNG) plant.

The Sabah Gas Masterplan is the result of a joint study between the state and Petronas, both parties said in a joint statement.

It entails the construction of an LNG plant with a capacity of 2 million tonnes per annum (MTPA) at the Sipitang Oil and Gas Industrial Park, which will provide opportunities for Sabah to expand its LNG distribution across the state, they said.

The state government will take up a more prominent role in gas marketing and distribution, with 120 mmscfd volume of gas to be made available for development of key industries in the state, they said.

The masterplan also highlights a suite of petrochemical derivative options for Sabah to attract investors based on market needs and leveraging on locally available feedstock, they added.

(Reporting by Mei Mei Chu, Editing by Louise Heavens)