
By DayakDaily Team
KUCHING, Feb 4: Petroliam Nasional Bhd (PETRONAS) has clarified that the decommissioning of the Sabah-Sarawak Gas Pipeline (SSGP) will only impact the section running through Lawas, Limbang, Miri, and Bintulu in Sarawak.
In a statement on Monday as reported by Bernama, PETRONAS assured that the remaining sections of the SSGP will continue to operate as usual.
The decision follows a comprehensive review assessing the viability of the affected segment.
The national oil and gas company cited worsening environmental factors over the years as a key consideration, noting that these challenges have increasingly affected the pipeline’s integrity and safety.
Despite the partial decommissioning, PETRONAS reassured customers that energy supply commitments and contractual obligations will remain unaffected.
“PETRONAS remains committed to investing in Sabah and Sarawak through the development of value-added oil, gas, and energy-related projects in both states,” it added.
On Jan 29, PETRONAS announced plans to decommission mature assets in Malaysia’s upstream operations, including the SSGP.
The company’s Activity Outlook for 2025-2027 report also outlined efforts to assess unused assets for potential repurposing.
For the next three years, decommissioning plans include the plugging and abandonment of approximately 153 wells and the abandonment of about 37 offshore facilities and one onshore facility, that is the SSGP.
The 500km natural gas pipeline, which links the Sabah Oil and Gas Terminal in Kimanis, Sabah, to Petronas’ liquefied natural gas (LNG) complex in Bintulu, Sarawak, was constructed in 2011 and completed in 2014 at a cost exceeding RM4 billion. — DayakDaily