PETALING JAYA, The Sabah government, via its energy arm SMJ Energy Sdn Bhd (SMJE), will acquire a 25% equity stake in Petronas’ US$3.1 billion (RM13.17 billion) nearshore floating liquefied natural gas (ZLNG) facility in Sipitang.
The agreement was formalised through a heads of agreement signed between SMJE and Petronas at the Malaysia Petroleum Club.
Chief Minister Hajiji Noor said the collaboration supports the state’s long-term development goals by fostering industrial growth, boosting energy security, and unlocking new economic opportunities.
“The ZLNG project, with a production capacity of two million tonnes per annum (MTPA), is a significant addition to Malaysia’s LNG portfolio,” the statement from the Chief Minister’s Department said. Currently under construction, the facility is expected to begin operations in the second half of 2027.
The ZLNG plant will further strengthen Sabah’s role in the LNG sector, alongside two other floating facilities — PFLNG1 (1.2 MTPA) and PFLNG2 (1.5 MTPA) — already operating in state waters.
Sabah also plans to acquire a 40% participating interest in PFLNG1 through SMJE, with due diligence slated to begin in the second half of 2025.
