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Virtual Pipeline

19 July 2012 Launching of SEC's Compressed Natural Gas Project Via Virtual Pipeline System


YAB Datuk Seri Panglima Musa Hj. Aman (5th from left) launched the SEC'sCompressed Natural Gas Project Via Virtual Pipeline System and witnessed
by YB Dr. Yee Moh Chai, YB Au Kam Wah, Dato' Harun Hj. Ismail & others.


Sabah Energy Corporation Sdn. Bhd. (SEC) launched its Compressed Natural Gas Project / Virtual Pipeline System today at a leading hotel in Kota Kinabalu. The launching ceremony was graced by the right honourable Chief Minister, YAB Datuk Seri Panglima Musa Bin Haji Aman.

Earlier, the Engineering, Procurement, Construction and Commissioning(EPCC) contract was signed between SEC and its contractors, GNC Galileo of Argentina and Frugas Synergy Sdn. Bhd..The two customers who have signed their respective natural gas sales and purchase agreements with SEC are Ching Kuan Holdings Sdn. Bhd. and Colourcoil Industries Sdn. Bhd..

Dato’ Harun Haji Ismail, the CEO of SEC explained that for these two customers, natural gas will be available at their premises by the 1st quarter of 2013. Discussions are also ongoing with other potential customers who have expressed interest to convert their existing facilities to use this cheaper and environmentally friendlier form of fuel.

The Virtual Pipeline System is a proven technology where natural gas is compressed at a Mother Station at SEC’s premises in the KKIP and then transferred into special purpose built containers. The containers are then delivered by truck to the customers’ premises where a Daughter Station will decompress the gas to the customers' required pressure. The decompressed gas is then fed into the customers’ internal piping system.

Dato’ Harun explained that the Virtual Pipeline System is an economical approach to make available natural gas, which is a cheaper and environmentally friendlier fuel, to a broader spectrum of customers whose premises are located at distances as far away as 70KM from SEC’s existing premises in KKIP. With this System, capital intensive underground pipelines ( the traditional method of gas distribution ) can be avoided and the reach of customers can therefore be extended. The price of gas delivered to the customers’ premises is cheaper than alternative fuels by as much as 50%.

From the environmental perspective, industrial users of highly polluting fuels from wastes such as wood waste, saw dust and used oil, are encouraged to convert to natural gas to contribute to a cleaner environment for the present and future generations.

The technology provider of this Virtual Pipeline System is GNC Galileo of Argentina. The System has been used in Argentina for over 20 years and similar systems are being used in other parts of South America, and closer to home the technology is also used in the Philippines and Singapore. GNC Galileo will be working with its Malaysian agent, Frugas Synergy Sdn. Bhd. and SEC in providing continuous technical back-up for the System.

Apart from the technical back-up, Dato’ Harun stated that SEC has a complete team of trained and competent engineers and technicians to not only operate the System but also to assist customers in their studies to convert their existing equipment to use natural gas. The whole supply chain will also be regulated by the Malaysian Energy Commission, DOSH, JPJ and other Governmental bodies to ensure compliance with all aspects of natural gas supply via this System. The supply will also meet ISO standards.

On another note, Dato’ Harun explained that SEC was established in 1981 and has today grown into a State GLC with diversified interests in power plants, industrial glue manufacturing, production of spiral pipes, aviation and eco-tourism ventures and the only licensed oil and gas supply base in Sabah and Sarawak, apart from its core function of natural gas distribution.

Dato' Harun also said that SEC is envisioned to venture into further downstream and upstream oil and gas activities in Sabah.


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Download Virtual Pipeline Leaflet here
The paper presented by Mr. Juan Ojanguren is available for download here
Those with low bandwidth download here Part 1 , Part 2 , Part 3 , Part 4


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