KOTA KINABALU, Sabah has officially completed the acquisition of a 25% equity stake in Petronas PFLNG 3 Sdn Bhd, marking a significant step forward in the state’s efforts to strengthen its participation in Malaysia’s oil and gas sector and deepen collaboration with Petroliam Nasional Bhd (Petronas).
Chief Minister Datuk Seri Hajiji Noor said the move, executed through SMJ Energy Sdn Bhd — Sabah’s state-owned energy company — in partnership with Petronas LNG Sdn Bhd, represents a major milestone in enhancing Sabah’s role in upstream and downstream energy ventures.
“This acquisition not only reinforces the close working relationship between Sabah and Petronas, but also sets the foundation for future strategic collaborations in the oil and gas industry,” Hajiji said in a statement on Friday.
Petronas PFLNG 3 is currently developing a US$3.1 billion (RM13 billion) nearshore floating liquefied natural gas (FLNG) facility located at the Sipitang Oil and Gas Industrial Park (SOGIP). Designed to produce two million tonnes of LNG annually, the project is scheduled to commence operations in the second half of 2027.
Hajiji said the state’s participation in PFLNG 3 aligns with Sabah’s broader ambition to secure a stronger foothold in key energy projects within its borders, ensuring greater revenue generation and long-term sustainability for its energy sector.
The equity acquisition follows the signing of a heads of agreement between SMJ Energy and Petronas LNG Sdn Bhd in July 2025, witnessed by Hajiji and Petronas president and group chief executive officer Tan Sri Tengku Muhammad Taufik in Kuala Lumpur.
“With this partnership, Sabah is taking concrete steps towards becoming a significant player in Malaysia’s LNG industry. It reflects our commitment to developing local capacity, encouraging technology transfer, and ensuring that the people of Sabah benefit directly from the state’s natural resources,” Hajiji said.
The latest acquisition adds to SMJ Energy’s expanding investment portfolio, which already includes a 50% participation interest in the Samarang Production Sharing Contract, a 10% stake in Petronas LNG 9 Sdn Bhd, and 25% equity in Petronas Chemicals Fertiliser Sabah Sdn Bhd (SAMUR).
In addition, SMJ Energy fully owns Sabah International Petroleum Sdn Bhd (SIP), which manages strategic offshore assets such as floating production storage and offloading (FPSO) and floating storage and offloading (FSO) vessels — key infrastructure supporting the state’s growing energy operations.
Hajiji added that the state government will continue exploring new partnerships with Petronas and other major players to advance Sabah’s participation in sustainable energy development, boost industrial activity at SOGIP, and enhance the state’s position as a regional energy hub.
