Petronas inks Five-year Gas Sales Agreement To Ensure Secure Energy Supply For Sabah And Labuan

KUALA LUMPUR, Oct 1 (Bernama) -- Petroliam Nasional Bhd (Petronas), through Malaysia Petroleum Management (MPM), will supply gas to Sabah Electricity Sdn Bhd (SESB) for power generation in Sabah and Labuan.

In a statement today, the national oil and gas (O&G) company said that under the five-year gas sales agreement inked on June 30, 2024, Petronas will continue to supply 16 million standard cubic feet of gas per day to SESB.

Petronas also said that this collaboration reflects both parties’ commitment to efficient and responsible energy solutions where gas will play a key role in fueling the domestic economies of Sabah and Labuan.

“The agreement aligns with Petronas’ broader strategy to drive growth through sustainable energy initiatives while SESB continues to focus on enhancing energy solutions that support Sabah’s socio-economic development.

“The O&G firm remains committed to securing the nation’s energy supply while advancing low-carbon and low-emission operations, in line with its goal of achieving net-zero carbon emissions by 2050,” it added.

MPM senior vice-president Datuk Bacho Pilong said the agreement is a testament to the company’s enduring partnership with SESB and its shared ambition to secure a sustainable energy future for Sabah.

“Petronas remains committed to supporting Sabah’s industrial development by ensuring a stable and sustainable energy supply, which will be vital in driving the state’s growth,” he said.

SESB chief executive officer Mohd Yaakob Jaafar added that the agreement is key to meeting the state’s energy demands with reliable and sustainable solutions.

-- BERNAMA