lahad datu

kimanis

OIL, GAS & ENERGY SECTOR

EPP 1 : LAHAD DATU REGASIFICATION TERMINAL (LD RGT)

EPP 2 : SABAH O&G TERMINAL (SOGT) AND SABAH - SARAWAK PIPELINE (SSGP)

UPSTREAM/MIDSTREAM

UPSTREAM/MIDSTREAM

Key outcomes of the EPP / KPIs What needs to be done?• AvailabilityofnaturalgassupplyateastcoastofSabahincludingSandakan,LahadDatu

andTawau(alsoalongtheroute)• Transferoftechnologyandknowledgetolocalmanpowerandcontractorswhoareinvolved

withthisproject• Spurringtheeconomyalongthepipeline

• ConstructionperiodofLNGStorageTankwhichisthecriticalpathoftheproject(normallywilltakeupto24months)

• FrontEndphaseofaproject,whereactivitiesaremainlyfocusedtowardsprojectplanningandcontracting/biddingactivitiesfortheappointmentofFrondEndEngineeringDesignConsultantexpectedinmid-October2011

• EvaluateandfinalizethelandleaseofthereclaimedlandoftheproposedsitewithPOIC.• SiteReclamationworksisexpectedtostartbyQ12012

Key Challenges Mitigation Plan• TransportingmajorequipmentandbulkmaterialsfromSandakantoLahadDatu(~200km)• ShortageofcapablemanpowerduetosimultaneousconstructionofLDpowerplant• Availablemanpowerarelackofre-gasterminalconstructionskills(special)• Potentialsecuritythreatwithhistoricaleventsofpiratesattacktowardsworkersand

equipment• Coordinationforsafetyandevacuationduringemergencywithlocalauthorities

• ImprovementoftheroadconditionfromSandakantoLahadDatuorconsiderforpermanent/temporaryjettyatLahadDatu

• Propereducationplanningtoprepareanddeveloptheskilledandsemiskilledmanpower• Collaborationwithstateauthoritiestotightenthesecurityalongthecoastlines

Project Status

SOGT:On-goingconstruction

SSGP:Landacquisitionandpipeconstruction

Key outcomes of the EPP / KPIs What needs to be done?• AvailabilityofnaturalgassupplyatSOGIPandspurthehugepotentialofpetro-chemical

industry• Transferoftechnologyandknowledgetolocalmanpowerandcontractorswhoareinvolved

withthisproject• Spurringtheeconomyalongthepipeline

• Continuewiththeconstruction• ContinuewithlandacquisitionandnetworkingwithLandandSurveyDepartmentofSabah,

UPENSabahandDistrictOffices

Key Challenges Mitigation Plan• Acquisitionoflandforrightofways(ROW)• Shortageofcapablemanpowerandlocalcontractors• Potentialsecuritythreatmanpowerandequipmenttowardsworkersandequipmentfrom

unhappysquatters

• CollaborationwithLandandSurveyDepartmenttospeedupthelargenumberofdocumentationsduetolargenumberofprivatelandowners

• Propereducationplanningtoprepareanddeveloptheskilledandsemiskilledmanpower• Collaborationwithstateauthoritiestotightenthesecurityalongthecoastlines

Vaporization Station

Berth

JettyLNG Storage Tank (0.76 MTPA)

DESCRIPTION

Todevelopafacilitiestoreceive,storeandvaporizeimportedLNGwithamaximumcapacityof0.76MTPA(upto100mmscfd)andsupplythenaturalgastothePowerPlant

DESCRIPTION

512kmSabahSarawakGasPipelineconnectsKimanistoBintulu(PipelineinSabah:91.24km).AbranchlinewillbeconstructedtocaterforSOGIPinSipitang

Terminaltoreceiveandprocessoilandgasfromoffshore(Kinabalu,Gamusut,etc)inKimanis

OilTerminal:2.5mboeGasTerminal:1,250mmscfd

kimanis

kimanis

EPP 3 : GAS SEPARATION PLANT AT KIMANIS (GSP)

UPSTREAM/MIDSTREAM

EPP 4 : KIMANIS POWER PLANT (300MW)

DOWNSTREAM

DESCRIPTION

KimanisPowerPlantwilladdresstheimmediateneedsofelectricitydemandinSabah(especiallyinWestCoast)

Key outcomes of the EPP / KPIs What needs to be done?• Creationof415jobsforSabahanfromtopmanagementtosupportingstaffduring

operationsand2100jobsduringconstruction.Hence,transferoftechnologyandknowledgewilltakeplacetolocalmanpowerandcontractors

• Additional300MWofcleanerandstableenergysupplyintoSESBtopreserveSabahecotreasure

• ReducetheyearlylostfromindustriallossesRM4.59billion/peryearduetopowerinterruption

• CompleteconstructionofsiteofficebyQ12012• Proceedswithconstructiononcethelandworkcompleted• EnsurethecompletionofSOGTproject• EnsurethecompletionofSESBtransmissionfacilityupgrade

Key Challenges Mitigation Plan• LengthynegotiationperiodonPowerPurchaseAgreement(PPA)• Shortageofcapablemanpowerandlocalcontractors

• PendingMPRCdiscussionoutcome• Propereducationplanningtoprepareanddeveloptheskilledandsemiskilledmanpower

Key outcomes of the EPP / KPIs• AdditionalGDPofRM29,560milliontoSabahfrom

thatsalesofC3andC4ontopofC1andC2.• Thisextensionwillhelptoexpeditethegrowthof

KKIP• Industriesalongthepipelinecanalsobenefitfrom

thespinofffromextensionofthepipeline.

What needs to be done?• FeasibilityStudy:3months• DetailedFeasibilityStudy:9months• BasicEngineeringDesign:12months• EPCC:24months• Totalduration:4yearstocomplete

Key Challenges• ChoosingthecompatiblesystemforGSPtoconnect

withSOGTsystem• Layingthe75kmpipelinefromGSPatKimanisto

IndustrieswhichmostlywillbelocatedatKotaKinabaluandSOGIP

Mitigation Plan• ProperfeasibilitystudyondesigningtheGSP• CollaborationeffortbetweenSEC,PETRONASand

SabahStateAuthorities(i.e.SabahLandandSurveyDepartmentandUPENSabah)

DESCRIPTION

TodesignandbuiltanLPGextractionplantanditsexportfacilitiestoenhancethevalueofSabahgasatSabahO&GTerminal(SOGT)

PipelinefromOffshore

NewTransmission/DistributionPipeline

Saleswillbetransmitted

SSGP

SOGT

Bintulu

Industries

GSP

Capacity

KIMANIS POwer SdN Bhd

300 MW

Natural Gas (60 mmscfd)

SESB

Fuel

Off-taker

OIL, GAS & ENERGY SECTOR

lahad datu

EPP 5 : LAHAD DATU POWER PLANT (300MW)

DOWNSTREAM

EPP 6 : SIPITANG OIL & GAS INDUSTRIAL PARK (SOGIP)

DOWNSTREAM

DESCRIPTION

ThefuelforthepowerplantwillbeLNG

ThepowerplantandLNGre-gasificationplantaretobebuiltinPOICLahadDatuPhase3

Key outcomes of the EPP / KPIs• Creationof390jobsforSabahanfromtopmanagement

tosupportingstaffduringoperationsand2737jobsduringconstruction.Hence,transferoftechnologyandknowledgewilltakeplacetolocalmanpowerandcontractors

• Additional300MWofcleanerandstableenergysupplyintoSESBtopreserveSabahecotreasure

• ReducetheyearlylostfromindustriallossesRM4.59billion/peryearduetopowerinterruption

What needs to be done?• ProjectconsortiumneedstoResolvelandpurchase/

leasemattersbyDec2011• Resolvejettybuildingandownershipmattersbetween

projectconsortiumandPOIC/SabahAuthoritiesbyDec2011

• ProjectconsortiumneedstostartthelandworkslatestbyQ12012

• MLNGneedstosecuretheLNGimportsuppliesfrominternationalmarketby2014

Key Challenges• POICpolicynottosellseafrontlandandprojectowner

plantopurchasethelandforjettyandporttolowertheprojectcostandensurethesecurityoflongterminvestment

• POICpolicyforthemtobuildandoperatethejettyvsprojectownerplantoselfbuildandselfoperatethejettytoreducecost

• LengthynegotiationperiodonPowerPurchaseAgreement(PPA)

• Shortageofcapablemanpowerandlocalcontractors

Mitigation Plan• Workontheagreedpriceforbothpartieswhetheron

selling/purchasingorleasingtheland• Speedupstategovernmentdecisionontheownershipof

thejetty• InterventionfromMPRC,stategovernmentintothe

negotiationofPPAtospeedupthedecision• Propereducationplanningtoprepareanddevelopthe

skilledandsemiskilledmanpower

Capacity

LdPP300 MW

Natural Gas (60 mmscfd)

SESB

Fuel

Off-taker

SOGIP

DESCRIPTION

Phase1-SAMUR(1.25mt/yearureaproduction)–620acresToprovidethenecessaryinfrastructure(basicroad,drainage,watersupply&compoundlighting)requiredforthedevelopmentofSAMUR

Phase2–Mitsui(1.0mt/yearammoniaproduction)–690acresToprovidethenecessaryInfrastructure(basicroad,drainage,watersupply&compoundlighting)requiredforthedevelopmentofammoniaplant

Phase3-Developmentofbasicinfrastructurefor3,000AcresofIndustrialLand

SAMURProjectSite Phase1DevelopmentPlan

Phase2DevelopmentPlan Phase3DevelopmentPlan

Key outcomes of the EPP / KPIs• ToaccelerateindustrialdevelopmentinSabah• TocreatejobopportunityandcontributetoGDP

growth• Tomakeammoniaavailableataverageof

957,000mt/yearasrawfeedstocktobeusedbyvariousindustriestoproduceproductssuchasacrylonitrile,capro-lactum,lsocyanaeandammoniumnitrate.

• Contributetothelocaljobmarket.• Technologytransferthroughjointventurewith

OricaLimited(Australia)

What needs to be done?• Toprovidebasicinfrastructureinthearea

(Accessroad,water&electricity).• Vendordevelopmentprogrammetobe

designedfortheproject.Tohaveprogrammeforparticipantsinordertoacquireskills&knowledgebeyondthoserequired.

Key Challenges• Lackofbasicinfrastructureandpublicamenities

suchasroad,drainage,water&electricity.• Identifynewpotentialprivatesectortoutilise

ammonia.• Needofinvestmentpackagetoattractinvestors• ROWforutilities• Betterroadconditionandportfacilitiestoexport

endproducts.Accommodationandcommercialfacilities.

• Guaranteedgassupply

Mitigation Plan• Toconstructbasicinfrastructuressuchassite

formation,road,drainage&waterreticulation.• Toprovidewatersupply-20mld• Toprovideelectricitysupply-18MW• Provide90mmscfdofgas

Key outcomes of the EPP / KPIs• ToaccelerateIndustrialdevelopmentinSabah• TocreatejobopportunityandcontributetoGDP

growth• DesignatedareaforoilandgasIndustry• CooperationandsynergywithBrunei’sPMB

development• SynergywithAseanSupplyBase(ASB)in

Labuan• Contributetothelocaljobmarket

What needs to be done?• Toprovidebasicinfrastructureinthearea

(accessroad&water).• Vendordevelopmentprogrammetobe

designedfortheproject.Tohaveprogrammeforparticipantsinordertoacquireskills&knowledgebeyondthoserequired.

• Lightandmediumfabrication• Integratedlogisticscentre• Fullyequippedlogisticsfacilityforstorage,

transportation,freightforwarding,procurement,customs,immigrationclearance,agencyrelatedservices

• Supplybasefunction:purpose-builtbasewithofficespace,workshops,warehousecomplexandopenyard

• StorageofOCTG,tubularandheavyequipment

Key Challenges• Identifynewpotentialprivatesectortoutilise

gas,ammoniaandurea.• Needofinvestmentpackagetoattractinvestors• ROWforutilities• Betterroadconditionandportfacilitiestoexport

endproducts.Accommodationandcommercialfacilities

Mitigation Plan• Toconstructbasicinfrastructuressuchasroad

&drainage.• Toprovidewatersupply

Phase1DevelopmentPlan Phase2DevelopmentPlan

OIL, GAS & ENERGY SECTOR

kimanis

EPP 7 : PIPELINE TO KKIPUPSTREAM/MIDSTREAM

Key outcomes of the EPP / KPIs What needs to be done?• Withthisextensionofthepipeline,thesecondaryrecoveryofoilwellsinERBWestfieldis

possible• ThisextensionwillhelptoexpeditethegrowthofKKIPaswellasensurethenaturalgas

supplysecuritytotheKKIP’sIPPsandsmallindustrialusers• Industriesalongthepipelinecanalsobenefitfromthespinofffromextensionofthe

pipeline

• EconomicstudiesoftheviabilityoftheprojectbyPGBandSEC• CollaborationdemandprojecteddemandstudiesbetweenSEC,PGBandKKIP• ProvisionofROW• SyndicationwithMalaysiaGasManagement(MGM)andPETRONASCarigaliSdnBhd

(PCSB)ontheextraallocationofnaturalgas

Key Challenges Mitigation Plan• AcquisitionoflandforROW• Landacquisitionforcitygatestations• Noextragasallocation

• WorktogetherwithJKRandSabahLandAuthoritiestomapoutcommonutilitycorridorortunnel

• WorktogetherwithSabahLandAuthoritiestoassistintheacquisitionoflandintherespectiveareas/districtsfortheconstructionofthecitygatestation

• WorkwithPETRONASMalaysianGasManagementUnittosecureadditionalgasallocation

KK  

KKIP  

Kimanis  

SSGP  

Propose  Extension  

85  km  Extension  Pipeline  

Ppr  

LK  

Ppg  

DESCRIPTION

ExtensionofSSGPtappedfromKimanisendtoKKIP•Distance:85km•Diameter:18”•ExpectedCompletion:2015

Theextensionwillpassby•Papar•LokKawi•Penampang•KotaKinabalu

Expectedcompletion:2015

OIL, GAS & ENERGY SECTOR