Kimanis-Bintulu gas pipeline project - On!
Thank you for dropping by PetrolMalaysia.com. In this article we examine the Kimanis-Bintulu gas pipeline project.
On 1st Nov 2008, Prime Minister YAB Dato Seri Abdullah Ahmad Badawi announced at the 23rd UPKO congress that the Kimanis-Bintulu gas pipeline project was to go ahead. (Source: Malaysiakini, Abdullah's U-turn on gas pipeline project, 3rd Nov 2008) The Prime Minister had announced on 31st May 2008 that the project would be scrapped. However on 10th Oct 2008, Tan Sri Bernard Giluk Dompok noted that Petronas was proceeding with implementing the project, in disregard of the Prime Minister's earlier promise that it would be scrapped.
What: The Government plans to build a pipeline from Kimanis (Sabah) to Bintulu (Sarawak). Prime Minister YAB Abdullah Badawi has stated that only surplus gas would be transported from Kimanis to Bintulu. (Source: Malaysiakini, ibid.) He also said that sufficient gas would be allocated to meet the needs of Sabahans.
Price: Malaysiakini (3rd Nov 2008) states the cost will be RM3 billion whereas The Star Online (4th Nov 2008) states that it is "worth" RM1.5 billion. However the article on UPKO's website by the Star (30th June 2008) quotes Petronas vice-president of gas business Wan Zulkifli Wan Arifin that the project would cost RM390 million.
Who: Tan Sri Bernard Giluk Dompok, president of UPKO, has been most vocal against the pipeline project. He wants the project to be scrapped so that Sabahans can partake in the oil and gas industry. (Source: The Star Online, Dompok to raise gas pipeline issue with PM, 4th Nov 2008).
Sabah UMNO leader Datuk Ghapur Salleh has also questioned whether the promise of setting up a petrochemical industry, would be delivered. He noted that the ruling coalition had reneged their promises before. (Source: The Star Online, ibid.) Vast areas of land had been allocated to federal agencies to be developed by settlers, but were ultimately awarded to private companies for timber logging.