Sarawak Eyes Repurposing Sabah–Sarawak Gas Pipeline for Energy Transition

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Sarawak Eyes Repurposing Sabah–Sarawak Gas Pipeline for Energy Transition

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Sunset on pipeline (© Adobe Stock/tomas)
Sunset on pipeline (© Adobe Stock/tomas)

The Sarawak government is advancing plans to decommission the Sabah-Sarawak Gas Pipeline (SSGP) and repurpose its assets to support the state's industrial development and energy transition strategy, officials said on Monday.

According to Dayak Daily, a coordination meeting was held recently to review the progress of the decommissioning program. The meeting was chaired by Deputy Premier Datuk Amar Awang Tengah Ali Hasan, who also serves as the minister for natural resources and urban development.

During the meeting, PETRONAS Carigali Sdn Bhd (PCSB) presented updates on the SSGP assets within Sarawak and outlined potential projects that could use the pipeline’s existing infrastructure and Right-of-Way (ROW), pending sustainability assessments.

Awang Tengah said his ministry is the lead agency coordinating the decommissioning and facilitating the repurposing. He noted the initiative aligns with Sarawak’s strategy to "optimize legacy energy infrastructure for new, sustainable industries," according to a statement.

The decommissioning is directly linked to the handover of the pipeline's ROW from PETRONAS to the Sarawak government. Awang Tengah described this as a "significant step toward enhanced State participation and ownership in critical energy assets."

To manage the transition, the Sarawak government and PCSB have established the Sabah and Sarawak Gas Pipeline Decommissioning Coordination Committee (SDCC). The committee will ensure PCSB executes the decommissioning and handover of assets in line with industry standards and state goals.

On January 29, PETRONAS announced it was exploring the decommissioning of mature assets, including the SSGP. The company later clarified that the work would only affect the pipeline section running through the Lawas, Limbang, Miri, and Bintulu areas.