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KUCHING (Jan 29): Petronas has revealed plans to decommission the Sabah-Sarawak gas pipeline, a major infrastructure project that has been operational since 2014. The 500-kilometre pipeline, which connects Kimanis in Sabah to Bintulu in Sarawak, will be shut down as part of the national oil company’s broader decommissioning strategy.
In its latest activity outlook report, Petronas outlined its plans for the next three years, which include plugging and abandoning approximately 153 wells and decommissioning around 37 offshore facilities. These moves are part of the company’s efforts to manage aging infrastructure and focus on more sustainable energy solutions.
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The Sabah-Sarawak gas pipeline has played a crucial role in transporting natural gas from Sabah to Sarawak, supporting Malaysia’s liquefied natural gas (LNG) production. However, the pipeline faced challenges in 2022 when a leak forced Petronas to declare a force majeure on gas supplies to the Dua Malaysia LNG terminal. The force majeure was lifted in November last year after repairs were completed.
The decommissioning process is expected to be carried out carefully to ensure environmental safety and compliance with regulations. Petronas has not yet disclosed the exact timeline for the pipeline’s shutdown or the cost of the decommissioning project.
This decision reflects Petronas’ commitment to optimizing its operations and addressing the challenges of maintaining aging oil and gas infrastructure. The move also aligns with global energy trends, as companies worldwide shift their focus toward cleaner and more sustainable energy sources.