Sabah Eyes Regional Energy Hub with Strategic MoUs

13 April 2026

KOTA KINABALU: Chief Minister Datuk Seri Panglima Hajiji Noor on Monday witnessed the exchange of a series of Memoranda of Understanding (MoUs) between Sabah Oil & Gas Development Corporation Sdn. Bhd. (SOGDC) and its strategic partners for the proposed development of an energy hub at the Sipitang Oil & Gas Industrial Park (SOGIP).

The MoU exchange took place during a courtesy visit by a SOGDC-led delegation at the Chief Minister’s office in Menara Kinabalu, marking a significant step towards positioning Sabah as a regional energy hub.

The visit was held in conjunction with a proposed collaboration between SOGDC and EA Gibson, aimed at advancing the state’s energy infrastructure and strengthening its role in the regional oil and gas industry.

The SOGDC delegation was led by its Chairman, Datuk Ir. Shahelmey Yahya, accompanied by Chief Executive Officer and Managing Director Mohd Azmir Ramli, as well as board members.

Also present were representatives from international partners, including Aboitiz Chief Operating Officer Anton Perdises; ACWA Country Chief Executive Officer Matthew Chandapillai; EA Gibson Director Owen Bolton; WEC Executive Director Mathew Lee; Green Parrot (Abu Dhabi) Executive Director Miran Sepich; and EA Gibson Gas Department Project Director Tonci Tokic.

During the meeting, Hajiji and Shahelmey witnessed the exchange of several strategic and commercial MoUs between SOGDC and key industry players, including ACWA Power, Aboitiz Power Ltd and WEC, outlining initial collaboration for the Energy Hub project at SOGIP.

According to SOGDC, the proposed development will involve the construction of an integrated energy storage and distribution hub spanning approximately 275 acres.

The facility is expected to include infrastructure for liquefied natural gas (LNG), ammonia and hydrogen storage, as well as petrochemical facilities and power generation components.

A feasibility study will also be undertaken with ACWA Power to assess the development of a combined-cycle gas turbine (CCGT) power plant with a capacity of between 400 and 500 megawatts. Meanwhile, Aboitiz Power Ltd is exploring the development of a power transmission grid system, while WEC is considering the construction of a jetty and storage tanks.

Saudi Aramco has also expressed preliminary interest in participating in the project as a strategic partner and potential main LNG supplier.

Hajiji said the initiative aligns with the State Government’s aspiration to strengthen the energy sector as a key driver of Sabah’s economic growth.

“The State Government welcomes the proposed development of this energy hub as it not only has the potential to attract high-quality investments, but also creates more job opportunities and stimulates downstream industrial growth in Sabah.

“We remain committed to providing a conducive environment for investors while ensuring that all development initiatives deliver tangible benefits to the people and the state,” he said.

He added that the transformation of SOGIP into an integrated energy hub would further enhance Sabah’s competitiveness in the oil and gas industry.

The SOGDC initiative is expected to boost the state’s energy infrastructure capacity, attract high-value investments and support long-term industrial growth, particularly within the SOGIP area.