Petronas to Decommission Only Part of Sabah-Sarawak Gas Pipeline

Petronas announced Monday that it will decommission a portion of the RM4.6 billion Sabah-Sarawak Gas Pipeline, citing worsening environmental conditions.
The decision, which affects the pipeline section passing through Lawas, Limbang, Miri, and Bintulu, was made after a review of the section's viability, the national oil and gas company said.
Petronas emphasized that the remaining sections of the pipeline will continue to operate normally, ensuring the fulfillment of its energy supply contracts.
"Petronas remains committed to investing in Sabah and Sarawak through the development of value-adding oil and gas and energy-related projects in both states," the company said in a statement.
The 500-kilometer natural gas pipeline, operational since early 2014, connects Kimanis in Sabah to Bintulu in Sarawak. Petronas revealed plans to decommission the pipeline over the next three years in its activity outlook report last Tuesday, citing safety and operational challenges.
The company also plans to plug and abandon 153 wells and decommission 37 offshore facilities.
The move, however, attracted criticism from certain quarters, including former Works Minister Baru Bian, who expressed the fear that it might lead to increased costs and affect the livelihoods of the locals.