'Gas plant crucial for Sabah'

18 November, 2008- Daily Express

Kuala Lumpur: The gas-powered plant in Sabah needs to be developed quickly to ensure a stable electricity supply throughout the State, said Tenaga Nasional Bhd (TNB) Chief Executive Officer/President, Datuk Seri Che Khalib Mohamad Noh.

He said Petroliam Nasional Bhd (Petronas) has appointed TNB a technical consultant for the 300-megawatt project.

Che Khalib said this when asked to comment on Petronas President Tan Sri Hassan Merican's statement it was discussing with TNB the requirements to set up a gas-powered plant in Sabah.

"I think what is important for us is to make sure we can quickly set up the power plant in the east coast of Sabah. "This is necessary for Sabah. And it is a good contribution by Petronas to make sure that whatever gas they extract from Sabah be used for generation of electricity for the west coast," he told reporters after attending TNB's Deepavali Open House, here, Monday.

He said it was risky to place all the power plants in the west coast and transfer the power to the east as suggested by many.

"What we don't want is when there is power trip in the east coast there is no backup at all," he said.

Che Khalib said TNB has deferred plans to build its new corporate headquarters to meet the needs of its expanding operations.

"Things are difficult now. We are deferring, definitely until things get better," he said.

The new headquarters would be sited next to its current headquarters in Jalan Bangsar.

The new building is expected to enable the utility firm to save on rentals as its operations are scattered all over the place.- Bernama

SAPP motions on gas rejected both places

18 November, 2008- Daily Express

Kuala Lumpur: An attempt by the Sabah Progressive Party (SAPP) to simultaneously move emergency motions on Petronas' 500km gas pipeline project from Kimanis in Sabah to Bintulu in Sarawak met with failure when both the Dewan Rakyat and the Sabah State Assembly rejected them, Monday.

Both the assemblies held the view that although the RM3 billion project was a specific matter and of public interest, there was no urgency to debate it.

Dewan Rakyat Deputy Speaker Datuk Wan Junaidi Tuanku Jaafar turned it down when it was brought up by Sepangar MP Datuk Eric Majimbun, while Sabah State Assembly Speaker Datuk Juhar Mahiruddin did the same when Likas Assemblyman Datuk Liew Teck Chan raised it in Kota Kinabalu.

Eric, when raising the motion, said as the natural resource was coming from Sabah, it was only right that it be developed for the benefit of the people of Sabah.

Juhar told Liew that there would be ample opportunities to debate the matter during the Assembly sitting.

The Federal Government recently announced that the project would go ahead and that only surplus gas after meeting Sabah's petrochemical industry needs would be piped to Sarawak. The project is scheduled to be completed by March 2011.

At the Parliament lobby later, Sepanggar MP Datuk Eric Enchin Majimbun requested the Federal Government to revise the Petroleum Act 1976 to re-determine the oil royalties paid to Sabah for the State's development.

He said the Act should be revised every 10 years by taking into account, the gas pipe routes and fuel volume channelled to Bintulu, Sarawak, through Sabah in the interest of the public.

"Petronas and the Federal Government must see all this, instead of just saying they will pay the five per cent royalty," he told reporters.

Meanwhile, Tawau MP Datuk Chua Soon Bui said she supported the motion by Eric to cancel the 500km gas pipes from Kimanis, Sabah to Bintulu, Sarawak, costing RM3 billion.

She said the RM3 billion could be used to build more low-cost housing for the very poor families and for the improvement of basic infrastructures in Sabah.

PKR wants neutral assessment on deposits

18 November, 2008 - Daily Express

Kota Kinabalu: Parti Keadilan Rakyat (PKR) Vice President Datuk Dr Jeffrey Kitingan has called for an independent oil and gas consultant to find out whether Sabah's gas deposits are really the least in the nation.

Describing the statement about Sabah's natural resources by Petronas President Tan Sri Hassan Marican as "highly questionable", Jeffrey suggested the former step down if the assessment by the consultant proves to be different from what he claimed.

"If it is the lowest and not viable then why the need to exploit and pipe it or even build a petrochecmical plant?

"Would Petronas just build something for nothing? Or is Marican not telling the truth? What I know from other sources is that Sabah's oil and gas deposits are substantial as those in Sarawak and Terengganu," he said in a statement, Monday.

Jeffrey also challenged Chief Minister Datuk Seri Musa Aman to reveal to the public the details of deals discussed with Petronas since 2006, pointing out this is an era of transparency.

"This is not a small matter as it involves a key national resource in Sabah É the people have a right to know.

"For example, even the so-called Floating Production Storage Offshore (FPSO) activities and contracts, which pay up to US Dollars 500,000 per day, are only undertaken by those in the know through whom you know basis.

"Who are the FPSO contractors? Are the Petronas managers also involved?

Why doesn't the Chief Minister get YS Shipping Dua, which has various licences to be involved?," he said, adding Yayasan Sabah should be given a lead role in implementing the project involving RM1.6 billion of taxpayers' money.

In a related matter, Jeffrey said if building a LNG facility in Sabah was not viable, then why is the Government, at the same time, going ahead with the gas pipeline to Bintulu and the petrochemical plant.

"Is the Federal Government giving false hopes to Tan Sri Bernard Dompok and Sabahans or can both the pipeline and petrochemical industry be implemented viably for the benefit of the State and the people?"

He said figures given by Petronas on its reserves and current production level do not indicate, in any way, the viability or otherwise of the oil and gas industry in Sabah.

"It seems Sabah is always at the losing end. We have oil but we only get five per cent royalty. We have gas but it is being piped out.

"We have an oil and gas industry but little participation in its downstream activities (and) we have substantial oil and gas reserves/deposits but are being told you only have very little.

"Yet, Petronas talks about big royalty revenue, where is the logic?

Parliament should demand for an independent consultant and get the facts right," Jeffrey said.

SAPP motions on gas rejected both places

Kuala Lumpur: An attempt by the Sabah Progressive Party (SAPP) to simultaneously move emergency motions on Petronas' 500km gas pipeline project from Kimanis in Sabah to Bintulu in Sarawak met with failure when both the Dewan Rakyat and the Sabah State Assembly rejected them, Monday.

Both the assemblies held the view that although the RM3 billion project was a specific matter and of public interest, there was no urgency to debate it.

Dewan Rakyat Deputy Speaker Datuk Wan Junaidi Tuanku Jaafar turned it down when it was brought up by Sepangar MP Datuk Eric Majimbun, while Sabah State Assembly Speaker Datuk Juhar Mahiruddin did the same when Likas Assemblyman Datuk Liew Teck Chan raised it in Kota Kinabalu.

Eric, when raising the motion, said as the natural resource was coming from Sabah, it was only right that it be developed for the benefit of the people of Sabah.

Juhar told Liew that there would be ample opportunities to debate the matter during the Assembly sitting.

The Federal Government recently announced that the project would go ahead and that only surplus gas after meeting Sabah's petrochemical industry needs would be piped to Sarawak. The project is scheduled to be completed by March 2011.

At the Parliament lobby later, Sepanggar MP Datuk Eric Enchin Majimbun requested the Federal Government to revise the Petroleum Act 1976 to re-determine the oil royalties paid to Sabah for the State's development.

He said the Act should be revised every 10 years by taking into account, the gas pipe routes and fuel volume channelled to Bintulu, Sarawak, through Sabah in the interest of the public.

"Petronas and the Federal Government must see all this, instead of just saying they will pay the five per cent royalty," he told reporters.

Meanwhile, Tawau MP Datuk Chua Soon Bui said she supported the motion by Eric to cancel the 500km gas pipes from Kimanis, Sabah to Bintulu, Sarawak, costing RM3 billion.

She said the RM3 billion could be used to build more low-cost housing for the very poor families and for the improvement of basic infrastructures in Sabah.