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By DayakDaily Team
KUCHING, Jan 30: Ba’ Kelalan assemblyman Baru Bian has raised concerns about the significant financial implications surrounding the decommissioning of the Sabah-Sarawak Gas Pipeline (SSGP).
His statement was made yesterday (Jan 29) following Petronas’ announcement to decommission the 500km pipeline, which runs from Kimanis in Sabah to Bintulu in Sarawak.
Baru questioned the decision-making processes behind such large-scale project, emphasising that the decommissioning process will likely incur additional costs. He also pointed out the lack of feasibility studies before the pipeline’s construction.
“The construction of the SSGP reportedly cost about RM4.6 billion. Such a massive investment should have been preceded by thorough feasibility studies to ensure its long-term viability.
“Now, with its decommissioning, additional costs will inevitably be incurred. This raises serious questions about the planning and decision-making processes behind such large-scale projects,” he said.
While acknowledging the safety concerns tied to the pipeline, including multiple leakages and explosions over the years – one of which tragically resulted in the loss of life – Baru noted that the decommissioning also signals a loss of economic opportunities for the communities in his constituency and beyond.
The pipeline had initially been expected to bring long-term benefits, including job creation and economic development.
In light of the financial and economic challenges posed by the pipeline’s closure, Baru urged Petronas to ensure that the decommissioning process is handled responsibly.
He advocated for local companies to be awarded the decommissioning work, which he believed would provide much-needed economic benefits to the affected communities.
“Moving forward, I urge Petronas to ensure that the decommissioning process is handled responsibly, with minimal impact on the environment and the local communities.
“I also strongly advocate for the decommissioning work to be awarded to capable local companies. This would, at the very least, provide some economic benefits to the people in the region who are directly affected by the closure of the pipeline,” he added.
Petronas’ decommissioning plan includes the plugging and abandonment of 153 wells and the closure of 37 offshore facilities over the next three years. The decision comes after safety concerns, including a leak in 2022 that temporarily shut down the pipeline and affected gas supply to the Dua Malaysia liquefied natural gas (LNG) terminal.
As the representative for Ba’ Kelalan, Baru has committed to closely monitoring the decommissioning process and will continue to advocate for the best interests of his constituents throughout the closure. –DayakDaily