sabah entry point projects
TRANSCRIPT
lahad datu
kimanis
OIL, GAS & ENERGY SECTOR
EPP 1 : LAHAD DATU REGASIFICATION TERMINAL (LD RGT)
EPP 2 : SABAH O&G TERMINAL (SOGT) AND SABAH - SARAWAK PIPELINE (SSGP)
UPSTREAM/MIDSTREAM
UPSTREAM/MIDSTREAM
Key outcomes of the EPP / KPIs What needs to be done?• AvailabilityofnaturalgassupplyateastcoastofSabahincludingSandakan,LahadDatu
andTawau(alsoalongtheroute)• Transferoftechnologyandknowledgetolocalmanpowerandcontractorswhoareinvolved
withthisproject• Spurringtheeconomyalongthepipeline
• ConstructionperiodofLNGStorageTankwhichisthecriticalpathoftheproject(normallywilltakeupto24months)
• FrontEndphaseofaproject,whereactivitiesaremainlyfocusedtowardsprojectplanningandcontracting/biddingactivitiesfortheappointmentofFrondEndEngineeringDesignConsultantexpectedinmid-October2011
• EvaluateandfinalizethelandleaseofthereclaimedlandoftheproposedsitewithPOIC.• SiteReclamationworksisexpectedtostartbyQ12012
Key Challenges Mitigation Plan• TransportingmajorequipmentandbulkmaterialsfromSandakantoLahadDatu(~200km)• ShortageofcapablemanpowerduetosimultaneousconstructionofLDpowerplant• Availablemanpowerarelackofre-gasterminalconstructionskills(special)• Potentialsecuritythreatwithhistoricaleventsofpiratesattacktowardsworkersand
equipment• Coordinationforsafetyandevacuationduringemergencywithlocalauthorities
• ImprovementoftheroadconditionfromSandakantoLahadDatuorconsiderforpermanent/temporaryjettyatLahadDatu
• Propereducationplanningtoprepareanddeveloptheskilledandsemiskilledmanpower• Collaborationwithstateauthoritiestotightenthesecurityalongthecoastlines
Project Status
SOGT:On-goingconstruction
SSGP:Landacquisitionandpipeconstruction
Key outcomes of the EPP / KPIs What needs to be done?• AvailabilityofnaturalgassupplyatSOGIPandspurthehugepotentialofpetro-chemical
industry• Transferoftechnologyandknowledgetolocalmanpowerandcontractorswhoareinvolved
withthisproject• Spurringtheeconomyalongthepipeline
• Continuewiththeconstruction• ContinuewithlandacquisitionandnetworkingwithLandandSurveyDepartmentofSabah,
UPENSabahandDistrictOffices
Key Challenges Mitigation Plan• Acquisitionoflandforrightofways(ROW)• Shortageofcapablemanpowerandlocalcontractors• Potentialsecuritythreatmanpowerandequipmenttowardsworkersandequipmentfrom
unhappysquatters
• CollaborationwithLandandSurveyDepartmenttospeedupthelargenumberofdocumentationsduetolargenumberofprivatelandowners
• Propereducationplanningtoprepareanddeveloptheskilledandsemiskilledmanpower• Collaborationwithstateauthoritiestotightenthesecurityalongthecoastlines
Vaporization Station
Berth
JettyLNG Storage Tank (0.76 MTPA)
DESCRIPTION
Todevelopafacilitiestoreceive,storeandvaporizeimportedLNGwithamaximumcapacityof0.76MTPA(upto100mmscfd)andsupplythenaturalgastothePowerPlant
DESCRIPTION
512kmSabahSarawakGasPipelineconnectsKimanistoBintulu(PipelineinSabah:91.24km).AbranchlinewillbeconstructedtocaterforSOGIPinSipitang
Terminaltoreceiveandprocessoilandgasfromoffshore(Kinabalu,Gamusut,etc)inKimanis
OilTerminal:2.5mboeGasTerminal:1,250mmscfd
kimanis
kimanis
EPP 3 : GAS SEPARATION PLANT AT KIMANIS (GSP)
UPSTREAM/MIDSTREAM
EPP 4 : KIMANIS POWER PLANT (300MW)
DOWNSTREAM
DESCRIPTION
KimanisPowerPlantwilladdresstheimmediateneedsofelectricitydemandinSabah(especiallyinWestCoast)
Key outcomes of the EPP / KPIs What needs to be done?• Creationof415jobsforSabahanfromtopmanagementtosupportingstaffduring
operationsand2100jobsduringconstruction.Hence,transferoftechnologyandknowledgewilltakeplacetolocalmanpowerandcontractors
• Additional300MWofcleanerandstableenergysupplyintoSESBtopreserveSabahecotreasure
• ReducetheyearlylostfromindustriallossesRM4.59billion/peryearduetopowerinterruption
• CompleteconstructionofsiteofficebyQ12012• Proceedswithconstructiononcethelandworkcompleted• EnsurethecompletionofSOGTproject• EnsurethecompletionofSESBtransmissionfacilityupgrade
Key Challenges Mitigation Plan• LengthynegotiationperiodonPowerPurchaseAgreement(PPA)• Shortageofcapablemanpowerandlocalcontractors
• PendingMPRCdiscussionoutcome• Propereducationplanningtoprepareanddeveloptheskilledandsemiskilledmanpower
Key outcomes of the EPP / KPIs• AdditionalGDPofRM29,560milliontoSabahfrom
thatsalesofC3andC4ontopofC1andC2.• Thisextensionwillhelptoexpeditethegrowthof
KKIP• Industriesalongthepipelinecanalsobenefitfrom
thespinofffromextensionofthepipeline.
What needs to be done?• FeasibilityStudy:3months• DetailedFeasibilityStudy:9months• BasicEngineeringDesign:12months• EPCC:24months• Totalduration:4yearstocomplete
Key Challenges• ChoosingthecompatiblesystemforGSPtoconnect
withSOGTsystem• Layingthe75kmpipelinefromGSPatKimanisto
IndustrieswhichmostlywillbelocatedatKotaKinabaluandSOGIP
Mitigation Plan• ProperfeasibilitystudyondesigningtheGSP• CollaborationeffortbetweenSEC,PETRONASand
SabahStateAuthorities(i.e.SabahLandandSurveyDepartmentandUPENSabah)
DESCRIPTION
TodesignandbuiltanLPGextractionplantanditsexportfacilitiestoenhancethevalueofSabahgasatSabahO>erminal(SOGT)
PipelinefromOffshore
NewTransmission/DistributionPipeline
Saleswillbetransmitted
SSGP
SOGT
Bintulu
Industries
GSP
Capacity
KIMANIS POwer SdN Bhd
300 MW
Natural Gas (60 mmscfd)
SESB
Fuel
Off-taker
OIL, GAS & ENERGY SECTOR
lahad datu
EPP 5 : LAHAD DATU POWER PLANT (300MW)
DOWNSTREAM
EPP 6 : SIPITANG OIL & GAS INDUSTRIAL PARK (SOGIP)
DOWNSTREAM
DESCRIPTION
ThefuelforthepowerplantwillbeLNG
ThepowerplantandLNGre-gasificationplantaretobebuiltinPOICLahadDatuPhase3
Key outcomes of the EPP / KPIs• Creationof390jobsforSabahanfromtopmanagement
tosupportingstaffduringoperationsand2737jobsduringconstruction.Hence,transferoftechnologyandknowledgewilltakeplacetolocalmanpowerandcontractors
• Additional300MWofcleanerandstableenergysupplyintoSESBtopreserveSabahecotreasure
• ReducetheyearlylostfromindustriallossesRM4.59billion/peryearduetopowerinterruption
What needs to be done?• ProjectconsortiumneedstoResolvelandpurchase/
leasemattersbyDec2011• Resolvejettybuildingandownershipmattersbetween
projectconsortiumandPOIC/SabahAuthoritiesbyDec2011
• ProjectconsortiumneedstostartthelandworkslatestbyQ12012
• MLNGneedstosecuretheLNGimportsuppliesfrominternationalmarketby2014
Key Challenges• POICpolicynottosellseafrontlandandprojectowner
plantopurchasethelandforjettyandporttolowertheprojectcostandensurethesecurityoflongterminvestment
• POICpolicyforthemtobuildandoperatethejettyvsprojectownerplantoselfbuildandselfoperatethejettytoreducecost
• LengthynegotiationperiodonPowerPurchaseAgreement(PPA)
• Shortageofcapablemanpowerandlocalcontractors
Mitigation Plan• Workontheagreedpriceforbothpartieswhetheron
selling/purchasingorleasingtheland• Speedupstategovernmentdecisionontheownershipof
thejetty• InterventionfromMPRC,stategovernmentintothe
negotiationofPPAtospeedupthedecision• Propereducationplanningtoprepareanddevelopthe
skilledandsemiskilledmanpower
Capacity
LdPP300 MW
Natural Gas (60 mmscfd)
SESB
Fuel
Off-taker
SOGIP
DESCRIPTION
Phase1-SAMUR(1.25mt/yearureaproduction)–620acresToprovidethenecessaryinfrastructure(basicroad,drainage,watersupply&compoundlighting)requiredforthedevelopmentofSAMUR
Phase2–Mitsui(1.0mt/yearammoniaproduction)–690acresToprovidethenecessaryInfrastructure(basicroad,drainage,watersupply&compoundlighting)requiredforthedevelopmentofammoniaplant
Phase3-Developmentofbasicinfrastructurefor3,000AcresofIndustrialLand
SAMURProjectSite Phase1DevelopmentPlan
Phase2DevelopmentPlan Phase3DevelopmentPlan
Key outcomes of the EPP / KPIs• ToaccelerateindustrialdevelopmentinSabah• TocreatejobopportunityandcontributetoGDP
growth• Tomakeammoniaavailableataverageof
957,000mt/yearasrawfeedstocktobeusedbyvariousindustriestoproduceproductssuchasacrylonitrile,capro-lactum,lsocyanaeandammoniumnitrate.
• Contributetothelocaljobmarket.• Technologytransferthroughjointventurewith
OricaLimited(Australia)
What needs to be done?• Toprovidebasicinfrastructureinthearea
(Accessroad,water&electricity).• Vendordevelopmentprogrammetobe
designedfortheproject.Tohaveprogrammeforparticipantsinordertoacquireskills&knowledgebeyondthoserequired.
Key Challenges• Lackofbasicinfrastructureandpublicamenities
suchasroad,drainage,water&electricity.• Identifynewpotentialprivatesectortoutilise
ammonia.• Needofinvestmentpackagetoattractinvestors• ROWforutilities• Betterroadconditionandportfacilitiestoexport
endproducts.Accommodationandcommercialfacilities.
• Guaranteedgassupply
Mitigation Plan• Toconstructbasicinfrastructuressuchassite
formation,road,drainage&waterreticulation.• Toprovidewatersupply-20mld• Toprovideelectricitysupply-18MW• Provide90mmscfdofgas
Key outcomes of the EPP / KPIs• ToaccelerateIndustrialdevelopmentinSabah• TocreatejobopportunityandcontributetoGDP
growth• DesignatedareaforoilandgasIndustry• CooperationandsynergywithBrunei’sPMB
development• SynergywithAseanSupplyBase(ASB)in
Labuan• Contributetothelocaljobmarket
What needs to be done?• Toprovidebasicinfrastructureinthearea
(accessroad&water).• Vendordevelopmentprogrammetobe
designedfortheproject.Tohaveprogrammeforparticipantsinordertoacquireskills&knowledgebeyondthoserequired.
• Lightandmediumfabrication• Integratedlogisticscentre• Fullyequippedlogisticsfacilityforstorage,
transportation,freightforwarding,procurement,customs,immigrationclearance,agencyrelatedservices
• Supplybasefunction:purpose-builtbasewithofficespace,workshops,warehousecomplexandopenyard
• StorageofOCTG,tubularandheavyequipment
Key Challenges• Identifynewpotentialprivatesectortoutilise
gas,ammoniaandurea.• Needofinvestmentpackagetoattractinvestors• ROWforutilities• Betterroadconditionandportfacilitiestoexport
endproducts.Accommodationandcommercialfacilities
Mitigation Plan• Toconstructbasicinfrastructuressuchasroad
&drainage.• Toprovidewatersupply
Phase1DevelopmentPlan Phase2DevelopmentPlan
OIL, GAS & ENERGY SECTOR
kimanis
EPP 7 : PIPELINE TO KKIPUPSTREAM/MIDSTREAM
Key outcomes of the EPP / KPIs What needs to be done?• Withthisextensionofthepipeline,thesecondaryrecoveryofoilwellsinERBWestfieldis
possible• ThisextensionwillhelptoexpeditethegrowthofKKIPaswellasensurethenaturalgas
supplysecuritytotheKKIP’sIPPsandsmallindustrialusers• Industriesalongthepipelinecanalsobenefitfromthespinofffromextensionofthe
pipeline
• EconomicstudiesoftheviabilityoftheprojectbyPGBandSEC• CollaborationdemandprojecteddemandstudiesbetweenSEC,PGBandKKIP• ProvisionofROW• SyndicationwithMalaysiaGasManagement(MGM)andPETRONASCarigaliSdnBhd
(PCSB)ontheextraallocationofnaturalgas
Key Challenges Mitigation Plan• AcquisitionoflandforROW• Landacquisitionforcitygatestations• Noextragasallocation
• WorktogetherwithJKRandSabahLandAuthoritiestomapoutcommonutilitycorridorortunnel
• WorktogetherwithSabahLandAuthoritiestoassistintheacquisitionoflandintherespectiveareas/districtsfortheconstructionofthecitygatestation
• WorkwithPETRONASMalaysianGasManagementUnittosecureadditionalgasallocation
KK
KKIP
Kimanis
SSGP
Propose Extension
85 km Extension Pipeline
Ppr
LK
Ppg
DESCRIPTION
ExtensionofSSGPtappedfromKimanisendtoKKIP•Distance:85km•Diameter:18”•ExpectedCompletion:2015
Theextensionwillpassby•Papar•LokKawi•Penampang•KotaKinabalu
Expectedcompletion:2015
OIL, GAS & ENERGY SECTOR