PETALING JAYA: Sabah Finance Minister Masidi Manjun has suggested that high operating and maintenance costs may have influenced Petronas’ decision to decommission the Sabah-Sarawak Gas Pipeline (SSGP).
The 500km pipeline, which runs from Kimanis, Sabah to Bintulu, Sarawak, was built in 2011 for over RM4 billion but has faced persistent geohazard risks and soil movements, leading to several incidents, including a fatal force majeure event.
Masidi noted that repairing any damage along the lengthy pipeline is both costly and difficult, making decommissioning a practical move.
Petronas will begin the decommissioning process from 2025 to 2027 and is expected to focus on alternative energy solutions, including a floating liquefied natural gas (LNG) facility in Sipitang and the world’s largest LNG facility in Bintulu.
Petronas stated that decommissioning activities are essential to restoring affected areas to a safe and environmentally stable condition.
