KOTA KINABALU (The Borneo Post) – Sabah Chief Minister Datuk Seri Panglima Hajiji Noor said that Sabah is making significant strides toward embracing the green technology revolution through the MYR20 billion green steel project at the Sipitang Oil and Gas Industrial Park (SOGIP).
During the Heads of Agreement handing over ceremony at Menara Kinabalu, where Sabah Energy Corporation Sdn Bhd (SEC) passed the agreement to Esteel Enterprise Sabah Sdn Bhd (Esteel Sabah) for the supply of 150 million standard cubic feet per day (mmscfd) of natural gas, Hajiji stated, “The state welcomes investments in products that harness renewable energy, improve waste management, and promote sustainable solutions. Investing in green technology-based products not only aligns with global sustainability goals but also taps into a rapidly growing market for eco-friendly solutions.”
He reiterated the points made during the Global Chinese Economic and Technology Summit (GCET) in Shenzen last November, emphasising that Sabah has identified key industry areas that promise substantial returns on investment while contributing to a more sustainable and prosperous future.
“The green steel project represents the foundation of the state’s economic growth and development strategy,” he added.
As part of the agreement, SEC will supply 100 million standard cubic feet per day (mmscfd) of natural gas to Esteel Sabah’s steel manufacturing plant and an additional 50 mmscfd for the plant’s power generation over the next two decades.
Hajiji commended SEC’s vital role in promoting sustainable initiatives and fostering regional development through its significant contribution to the Green Steel Project, which is set to reduce carbon emissions by 70 per cent, thanks to its use of natural gas as a reducing agent instead of coke and coal.
Esteel Enterprise Sabah Sdn Bhd, a subsidiary of Singapore’s Green Esteel Pte Ltd, had previously inked a land-lease agreement with the Sabah Oil and Gas Development Corporation Sdn Bhd (SOGDC) to establish the manufacturing plant at SOGIP in Sipitang back in November 2022.
Phase one of the project, with an estimated cost of USD1.93 billion, is slated to commence this year and be completed by 2026. The project is expected to generate approximately 2,795 job opportunities during its operational phase.
