PETRONAS Secures Five-Year Gas Sales Contract with Sabah Electricity

PETRONAS, through its subsidiary Malaysia Petroleum Management (MPM), will supply 16 million standard cubic feet of gas per day (MMscfd) to Sabah Electricity Sdn. Bhd. (SESB) for power generation under a newly formalized five-year Gas Sales Agreement (GSA). This agreement, signed on June 30, was recently celebrated with a formal document exchange ceremony, marking a significant milestone in their collaboration.

This partnership underscores both parties’ commitment to pursuing efficient and responsible energy solutions, recognizing the crucial role that natural gas will play in boosting the domestic economies of Sabah and Labuan. Datuk Ir. Bacho Pilong, Senior Vice President of MPM, emphasized that the GSA reflects the enduring relationship between PETRONAS and SESB, highlighting their shared goal of securing a sustainable energy future for Sabah. He stated, “This Gas Sales Agreement is a testament to our enduring partnership with SESB and our shared ambition in securing a sustainable energy future for Sabah.” He also reiterated PETRONAS's commitment to supporting Sabah’s industrial development by ensuring a stable energy supply, which is essential for the state’s growth.

Ir. Ts. Mohd Yaakob Jaafar, Chief Executive Officer of SESB, expressed his enthusiasm for continuing their strong partnership with PETRONAS. He noted that the agreement is vital for meeting the energy demands of the state with reliable and sustainable solutions. “We are delighted to continue our strong partnership with PETRONAS to power Sabah’s economic advancement. This agreement is key to meeting the state’s energy demands with reliable and sustainable solutions,” he said.

The GSA aligns with PETRONAS’s broader strategy to drive growth through sustainable energy initiatives, while SESB continues to enhance energy solutions that support Sabah’s socio-economic development. PETRONAS remains committed to securing the nation’s energy supply and advancing low-carbon and low-emission operations, in line with its goal of achieving net-zero carbon emissions by 2050.

In conclusion, this new agreement not only solidifies the partnership between PETRONAS and SESB but also represents a significant step toward achieving a sustainable energy landscape in the region. The collaboration reflects a mutual commitment to energy efficiency and a sustainable future, ultimately benefiting both the local economies and the environment. This agreement highlights the vital role of natural gas in supporting the growth of Sabah and Labuan's economies while addressing the challenges of energy demand in the region.

Petroliam Nasional Berhad (PETRONAS) is a worldwide energy corporation dedicated to producing and supplying the energy and solutions essential for advancing society in a responsible and sustainable manner. As the national oil and gas company of Malaysia, PETRONAS is tasked with protecting and overseeing the nation’s hydrocarbon resources.