OIL, GAS & ENERGY SECTOR UPSTREAM/MIDSTREAM EPP 1 : LAHAD DATU REGASIFICATION TERMINAL (LD RGT) DESCRIPTION To develop a facilities to receive, store and vaporize imported LNG with a maximum capacity of 0.76 MTPA (up to 100 mmscfd) and supply the natural gas to the Power Plant lahad datu Berth LNG Storage Tank Jetty (0.76 MTPA) Key outcomes of the EPP / KPIs What needs to be done? Vaporization Station • Availability of natural gas supply at east coast of Sabah including Sandakan, Lahad Datu • Construction period of LNG Storage Tank which is the critical path of the project (normally and Tawau (also along the route) will take up to 24 months) • Transfer of technology and knowledge to local manpower and contractors who are involved • Front End phase of a project, where activities are mainly focused towards project planning with this project and contracting/bidding activities for the appointment of Frond End Engineering Design • Spurring the economy along the pipeline Consultant expected in mid-October 2011 • Evaluate and finalize the land lease of the reclaimed land of the proposed site with POIC. • Site Reclamation works is expected to start by Q1 2012 Key Challenges Mitigation Plan • Transporting major equipment and bulk materials from Sandakan to Lahad Datu (~200km) • Improvement of the road condition from Sandakan to Lahad Datu or consider for • Shortage of capable manpower due to simultaneous construction of LD power plant permanent/temporary jetty at Lahad Datu • Available manpower are lack of re-gas terminal construction skills (special) • Proper education planning to prepare and develop the skilled and semi skilled manpower • Potential security threat with historical events of pirates attack towards workers and • Collaboration with state authorities to tighten the security along the coast lines equipment • Coordination for safety and evacuation during emergency with local authorities UPSTREAM/MIDSTREAM EPP 2 : SABAH O&G TERMINAL (SOGT) AND SABAH - SARAWAK PIPELINE (SSGP) DESCRIPTION 512 km Sabah Sarawak Gas Pipeline connects Kimanis to Bintulu (Pipeline in Sabah: 91.24km). A branch line will be constructed to cater for SOGIP in Sipitang Terminal to receive and process oil and gas from off shore (Kinabalu, Gamusut, etc) in Kimanis Oil Terminal: 2.5 mboe Gas Terminal: 1,250 mmscfd Project Status SOGT: On-going construction SSGP: Land acquisition and pipe construction kimanis Key outcomes of the EPP / KPIs What needs to be done? • Availability of natural gas supply at SOGIP and spur the huge potential of petro-chemical • Continue with the construction industry • Continue with land acquisition and networking with Land and Survey Department of Sabah, • Transfer of technology and knowledge to local manpower and contractors who are involved UPEN Sabah and District Offices with this project • Spurring the economy along the pipeline Key Challenges Mitigation Plan • Acquisition of land for right of ways (ROW) • Collaboration with Land and Survey Department to speedup the large number of • Shortage of capable manpower and local contractors documentations due to large number of private land owners • Potential security threat manpower and equipment towards workers and equipment from • Proper education planning to prepare and develop the skilled and semi skilled manpower unhappy squatters • Collaboration with state authorities to tighten the security along the coast lines OIL, GAS & ENERGY SECTOR UPSTREAM/MIDSTREAM EPP 3 : GAS SEPARATION PLANT AT KIMANIS (GSP) DESCRIPTION To design and built an LPG extraction plant and its export facilities to enhance the value of Sabah gas at Sabah O&G Terminal (SOGT) Key outcomes of the EPP / KPIs • Additional GDP of RM29,560 million to Sabah from that sales of C3 and C4 on top of C1 and C2. • This extension will help to expedite the growth of KKIP • Industries along the pipeline can also benefit from kimanis the spin off from extension of the pipeline. What needs to be done? Pipeline from Industries • Feasibility Study: 3 months Offshore • Detailed Feasibility Study: 9 months • Basic Engineering Design: 12 months • EPCC: 24 months • Total duration: 4 years to complete Key Challenges New Transmission / • Choosing the compatible system for GSP to connect Distribution Pipeline with SOGT system • Laying the 75km pipeline from GSP at Kimanis to Industries which mostly will be located at Kota Kinabalu and SOGIP Mitigation Plan • Proper feasibility study on designing the GSP • Collaboration effort between SEC, PETRONAS and SOGT Sabah State Authorities (i.e. Sabah Land and Survey Department and UPEN Sabah) GSP SSGP Sales will be transmitted Bintulu DOWNSTREAM EPP 4 : KIMANIS POWER PLANT (300MW) KIMANIS POWER SDN BHD DESCRIPTION Capacity 300 MW Natural Gas Fuel Kimanis Power Plant will address the (60 mmscfd) immediate needs of electricity demand in Off-taker SESB Sabah (especially in West Coast) kimanis Key outcomes of the EPP / KPIs What needs to be done? • Creation of 415 jobs for Sabahan from top management to supporting staff during • Complete construction of site office by Q1 2012 operations and 2100 jobs during construction. Hence, transfer of technology and • Proceeds with construction once the land work completed knowledge will take place to local manpower and contractors • Ensure the completion of SOGT project • Additional 300 MW of cleaner and stable energy supply into SESB to preserve Sabah eco • Ensure the completion of SESB transmission facility upgrade treasure • Reduce the yearly lost from industrial losses RM4.59billion/per year due to power interruption Key Challenges Mitigation Plan • Lengthy negotiation period on Power Purchase Agreement (PPA) • Pending MPRC discussion outcome • Shortage of capable manpower and local contractors • Proper education planning to prepare and develop the skilled and semi skilled manpower OIL, GAS & ENERGY SECTOR DOWNSTREAM EPP 5 : LAHAD DATU POWER PLANT (300MW) DESCRIPTION The fuel for the power plant will be LNG LDPP Capacity 300 MW The power plant and LNG re-gasification Natural Gas Fuel plant are to be built in POIC Lahad Datu (60 mmscfd) Phase 3 Off-taker SESB Key outcomes of the EPP / KPIs • Creation of 390 jobs for Sabahan from top management to supporting staff during operations and 2737 jobs during construction. Hence, transfer of technology and knowledge will take place to local manpower and contractors • Additional 300 MW of cleaner and stable energy supply into SESB to preserve Sabah eco treasure • Reduce the yearly lost from industrial losses RM4.59billion/per year due to power interruption What needs to be done? • Project consortium needs to Resolve land purchase/ lease matters by Dec 2011 • Resolve jetty building and ownership matters between project consortium and POIC / Sabah Authorities by Dec 2011 • Project consortium needs to start the land works latest by Q1 2012 • MLNG needs to secure the LNG import supplies from international market by 2014 Key Challenges • POIC policy not to sell sea front land and project owner plan to purchase the land for jetty and port to lower the project cost and ensure the security of long term investment • POIC policy for them to build and operate the jetty vs project owner plan to self build and self operate the jetty to reduce cost • Lengthy negotiation period on Power Purchase Agreement (PPA) lahad datu • Shortage of capable manpower and local contractors Mitigation Plan • Work on the agreed price for both parties whether on selling/purchasing or leasing the land • Speed up state government decision on the ownership of the jetty • Intervention from MPRC, state government into the negotiation of PPA to speed up the decision • Proper education planning to prepare and develop the skilled and semi skilled manpower DOWNSTREAM EPP 6 : Sipitang OIL & GAS Industrial PARK (SOGIP) DESCRIPTION Phase 1 - SAMUR (1.25 mt/year urea production) – 620 acres To provide the necessary infrastructure Phase 1 Development Plan Phase 2 Development Plan (basic road, drainage, water supply & Key outcomes of the EPP / KPIs Key outcomes of the EPP / KPIs compound lighting) required for the • To accelerate Industrial development in Sabah • To accelerate industrial development in Sabah • To create job opportunity and contribute to GDP • To create job opportunity and contribute to GDP development of SAMUR growth growth • Designated area for oil and gas Industry • To make ammonia available at average of • Cooperation and synergy with Brunei’s PMB 957,000 mt/year as raw feedstock to be used development by various industries to produce products such Phase 2 – Mitsui ( 1.0 mt/year ammonia • Synergy with Asean Supply Base (ASB) in as acrylonitrile, capro-lactum, lsocyanae and Labuan ammonium nitrate. production) – 690 acres • Contribute to the local job market • Contribute to the local job market. To provide the necessary Infrastructure • Technology transfer through joint venture with What needs to be done? Orica Limited (Australia) (basic road, drainage, water supply & • To provide basic infrastructure in the area What needs to be done? compound lighting) required for the (access road & water). • Vendor development programme to be • To provide basic infrastructure in the area development of ammonia plant designed for the project. To have programme (Access road, water & electricity). SAMUR Project Site Phase 1 Development Plan for participants in order to acquire skills & • Vendor development programme to be knowledge beyond those required. designed for the project. To have programme • Light and medium fabrication for participants in