Sarawak eyes new energy ventures through repurposing of Sabah–Sarawak Gas Pipeline

Awang Tengah (seated, fourth left) and others during the coordination meeting to review the progress of the SSGP decommissioning and repurposing programme in Kuching on Oct 20, 2025.
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By DayakDaily Team

KUCHING, Oct 20: The Sarawak government, through the Ministry of Natural Resources and Urban Development (MUDeNR), is moving ahead with the decommissioning and potential repurposing of the Sabah–Sarawak Gas Pipeline (SSGP) to support the State’s industrial and energy transition agenda.

According to a statement, a coordination meeting chaired by Deputy Premier Datuk Amar Awang Tengah Ali Hasan, who also serves as Minister for Natural Resources and Urban Development, was held today to review the progress of the SSGP decommissioning and repurposing programme.

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The meeting focused on reviewing the progress of the SSGP decommissioning process and discussing the potential repurposing of the pipeline’s Right-of-Way (ROW) to support Sarawak’s industrial and energy transition agenda.

During the meeting, PETRONAS Carigali Sdn Bhd (PCSB) presented a comprehensive update on the status of SSGP assets in Sarawak, as well as potential projects that could utilise the existing pipeline infrastructure and ROW, subject to site suitability and sustainability assessments.

Awang Tengah also emphasised that his ministry has been appointed by the State government as the lead agency to coordinate the decommissioning and facilitate the repurposing of the SSGP and its ROW, noting that this initiative aligns with Sarawak’s long-term strategy to optimise legacy energy infrastructure for new, sustainable industries.

He further explained that the decommissioning of the SSGP is directly linked to the handover of the ROW from PETRONAS to the Sarawak government, symbolising a significant step toward enhanced State participation and ownership in critical energy assets.

To ensure effective implementation, the meeting was briefed on the establishment of the Sabah and Sarawak Gas Pipeline Decommissioning Coordination Committee (SDCC), jointly formed between the Sarawak government and PCSB.

The committee aims to facilitate PCSB’s execution of decommissioning and the handover of SSGP assets in a sustainable manner, consistent with industry standards and the aspirations of the Sarawak government.

The meeting concluded with a shared commitment between MUDeNR, PETRONAS, and relevant State agencies to collaborate in exploring viable repurposing options that will generate new economic opportunities while upholding environmental sustainability and community safety.

On Jan 29, PETRONAS announced that it is looking at decommissioning activities of matured assets in the country’s upstream operations, including the SSGP. It was later clarified that the decommissioning of the SSGP will only affect the section that runs through Lawas, Limbang, Miri and Bintulu.

In its Activity Outlook for 2025-2027 report, PETRONAS said the process also involves assessing unused assets for potential repurposing. — DayakDaily

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