KUALA LUMPUR (Jan 28): Petroliam Nasional Bhd (Petronas) will decommission the Sabah-Sarawak Gas Pipeline (SSGP) as part of its decommissioning plans from 2025 to 2027, according to the national oil company’s Activity Outlook report.
“For the next three years, decommissioning plans include the plugging and abandonment of approximately 153 wells and the abandonment of about 37 offshore facilities and one onshore facility, that is the Sabah-Sarawak Gas Pipeline (SSGP),” the report stated.
The 500km natural gas pipeline, which links the Sabah Oil and Gas Terminal in Kimanis, Sabah, to Petronas’ liquefied natural gas (LNG) complex in Bintulu, Sarawak, was constructed in 2011 and completed in 2014 at a cost exceeding RM4 billion.
However, the natural gas pipeline has been plagued by geohazard risks and soil movements, leading to several incidents including a fatal force majeure event. Petronas had earlier booked impairments on the pipeline due to these incidents. Petronas confirmed that it was reviewing the project back in August 2023.
The latest Petronas Activity Outlook report noted that decommissioning activities of matured assets in Malaysian upstream operations are "essential to restore the area to a safe and environmentally stable condition". "Additionally, these activities include assessing unused assets for potential repurposing," Petronas added.
Over the next three years, Petronas plans to plug and abandon wells and dismantle facilities while exploring innovative solutions to maximise value from decommissioned assets.
In addition to decommissioning, Petronas is advancing key upstream projects like Kasawari, Gumusut-Kakap Redevelopment and the Jerun field to sustain production and strengthen energy security.