Construction Of Gas Pipeline To Create Economic Spin-offs
KUCHING, Nov 21 (Bernama) - The construction of the Sabah-Sarawak Gas Pipeline (SSGP) by Petronas is expected to create substantial economic spin-offs for Sarawak, Sarawak Second Finance Minister Datuk Seri Wong Soon Koh said today.
He told the State Assembly that SSGP, a component of the Integrated Oil and Gas Infrastructure Project, will channel the gas from the Sabah Oil and Gas Terminal in Kimanis, Sabah, to the Petronas Liquefied Natural Gas Complex in Bintulu, Sarawak.
He said the 500km pipeline, of which 410km will be in Sarawak, is to be built between next January and 2010.
"With buyers being supplied at the Bintulu Port Terminal, this will increase the volume of port handling activities and directly contribute to the increase in revenue to Bintulu Port Bhd, in which the state is a substantial shareholder.
“About 80 percent of the integrated project cost will be incurred in the upstream component of the project. It is without doubt a mega project that will definitely create economic spin-offs and also directly contribute to the overall growth of the state’s construction sector,” he said in reply to Stephen Rundi Utom (BN-Kemena).
Wong said the construction and laying of the pipeline will directly benefit the local contractors, transporters and suppliers through business opportunities as well as providing employment opportunities to skilled and semi-skilled local workers.
For instance, Petronas has estimated that no fewer than 1,800 welders and fitters will be required for the project.
To ensure that the state’s interest will be protected, Wong said, Petronas encourages the participation of qualified local companies, particularly Bumiputera contractors who are licensed or registered with Petronas and priority will be given to those the expertise.
“During a recent meeting between the state government, Petronas assured that certain scopes of work will be for Malaysian and Sarawakian contractors,” he added.
“It has also given an assurance that the local Bumiputera Chamber of Commerce and Industry will be informed of the potential business opportunities arising from the implementation of the project.”