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21 JUNE 2026

Saturday, August 1, 2026

Sabah set to get 40% stake in Petronas’s floating LNG project

 Sabah chief minister Hajiji Noor attributes this success to the close cooperation between the state and federal governments.

hajiji noor
Sabah chief minister Hajiji Noor said the state will also get a 20% stake in the oil and gas field in Sandakan that Petronas has secured.
PETALING JAYA:
The Sabah government is expected to secure a 40% stake in a floating liquefied natural gas (FLNG) project in the state under an agreement to be signed with Petronas in the coming months.

Sabah chief minister Hajiji Noor said this was the result of close cooperation between the state and federal governments, Bernama reported.

It is also part of an earlier agreement with Petronas to enable the state government to play a more active role in Sabah’s oil and gas industry.

“For the oil and gas field in Sandakan that Petronas has secured, Sabah will also be given a 20% stake,” he said while launching the “Jelajah Rakyat and Madani Rahmah” sales programme for the Kalabakan parliamentary constituency at the Kalabakan district office today.

Separately, he said Sabah was attracting growing investor interest due to the state government’s investor-friendly policies.

“Over the past five years, nearly 40 foreign diplomats and high commissioners have met with me.”

Hajiji said existing industrial parks, particularly the Kota Kinabalu Industrial Park and the Sipitang Oil and Gas Industrial Park, were nearing full capacity due to strong investor demand.

He said the state government was therefore expanding industrial development to new areas, including the east coast of Sabah, as well as establishing a blue economy-based industrial park in the northern part of the state.

On the proposed new township in Kalabakan, Hajiji said about 400ha had been identified for the project, which would support economic growth along the Sabah-Indonesia border.

He added that the state government also plans to establish a customs, immigration and quarantine complex at the border, as well as build a road linking Kalabakan to the border. - FMT

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