SEC is the sole licensee to distribute natural gas in Sabah and Labuan, and has been distributing natural gas in these two areas since 1986 and 2003 respectively.
Natural gas is priced cheaper than alternative fuels to ensure significant and substantial energy cost savings to the users. Natural gas is a very clean, safe, efficient and environmentally-friendly fuel as compared with other fossil fuels. Apart from savings in fuel costs, industrial users will also achieve other savings due to higher quality and fewer rejects of finished products, lower costs in maintenance, handling and storage, manpower, pollution control, etc.
The utilization of natural gas in place of other fossil fuels will not only lower the cost of doing business but also contribute to a cleaner environment for the present and future generations.
Currently, SEC’s network of underground pipelines are supplying natural gas to 14 industrial users that are located in the Kota Kinabalu Industrial Park (KKIP).
Owing to the high cost of laying underground pipelines and geographically scattered industrial users, SEC has not been able to bring the benefits of natural gas to wider spectrum of users in Sabah. To overcome these constraints, SEC embarked on a Virtual Pipeline System (VPS) project in 2012 to bring Compressed Natural Gas (CNG) to users within a 70 KM radius from KKIP. With this innovative approach, another 9 users including 2 major hotels are now benefitting from using natural gas.
To reach an even wider range of customers, SEC’s Micro Liquefied Natural Gas (LNG) Plant will be commissioned before the end of 2018. With the availability of LNG, smaller commercial consumers can also be supplied with this fuel of choice. LNG brings another milestone for SEC as larger customers located as far as the east coast of Sabah will for the first time, be able to be supplied with natural gas.
The CNG and LNG initiatives were implemented with a main objective of bringing the benefits of natural gas to users throughout Sabah.
Apart from the gas distribution efforts, SEC is also actively pursuing other energy related projects such as Large Scale Solar (LSS) and a hydro electric plant.
The efforts over the years have been recognized by relevant authorities. Besides receiving a quality financial management award, SEC was also the first State Government Body to be accredited with ISO certification for its business processes.
These achievements would not have been achievable without the support of our Stakeholders. I would like to thank the State Government, the regulatory bodies and government authorities, the Board of Directors, all business associates and the employees, who have contributed to SEC’s success over the years. I sincerely look forward to their continuous support in the years ahead.
DATUK HARUN HJ ISMAIL