Controversial Rm4bil Sabah Gas Pipeline Project Scrapped Again

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The Trans-Sabah Gas Pipeline project was cancelled in 2018 after it was discovered that 88% of the cost had been paid despite only 13% of the work being completed. (Bernama pic)
PETALING JAYA: Putrajaya does not plan to proceed with the controversial Trans-Sabah Gas Pipeline (TSGP) project, which was scrapped by the Pakatan Harapan administration in 2018 and then revived by the Perikatan Nasional-led government three years later.
Economy minister Rafizi Ramli said the government decided not to proceed with the project since it had agreed to hand over Sabah’s gas supply regulatory power to the state government on Jan 10, 2023.
“On Sept 5, 2018, the government decided to cancel the TSGP project. In line with this decision, the supply of domestic natural gas from Sabah initially allocated for the TSGP was redistributed to meet the demand of other strategic sectors.
“Therefore, the government does not intend on continuing with implementing the TSGP project in the future,” he said in a written parliamentary reply.
Rafizi was replying to Bung Moktar Radin (BN-Kinabatangan) who asked if the government planned to carry out the project to help Sabah overcome its electricity supply woes, particularly on the state’s east coast.
The minister also pointed out that the regulatory authority over Sabah’s electricity supply had been handed to the state government on Jan 3 last year.
“The federal government is committed to supporting the agenda of developing the gas and electricity supply sector in Sabah.
“In this regard, my ministry works closely with the Sabah economic planning unit and the Energy Commission of Sabah in drafting Sabah’s development agenda through the formulation of national economic development policies under the 13th Malaysia Plan,” he said.
The RM4.06 billion TSGP project was initiated in 2016 under the Barisan Nasional government. It involved laying 662km of gas pipelines from the Sabah oil and gas terminal in Kimanis on the state’s west coast to the east coast districts of Sandakan and Tawau.
Following the change of government in Putrajaya in May 2018, it was revealed that 88% of the project value of TSGP and another project called the Multi-Product Pipeline had been paid out despite only 13% of the work being completed.
Both projects were then cancelled, with the government citing its fiscal position.
In February 2021, the Muhyiddin Yassin administration decided to revive the TSGP, with further negotiations carried out with the original company awarded the project to decide on the direction of the pipeline.
In December 2023, Sabah senator Anifah Aman urged the Anwar Ibrahim administration to give an update on the TSGP. - FMT

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