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Petronas has opted to decommission the Sabah Sarawak gas pipeline (SSGP), a critical piece of Malaysia’s energy infrastructure, by the end of 2027, reported Upstream.
The decision comes after the RM4.6bn ($1.5bn) project faced several operational challenges including leaks and fires.
The 512km-long SSGP, with a 36in diameter, was designed to transport up to 750 million cubic feet per day (mcf/d) of gas from offshore Sabah fields to the Petronas LNG Complex in Sarawak.
Despite its initial promise, the pipeline has been plagued by incidents since its inception.
A significant leak in September 2022, caused by subsidence issues at a section near Lawas, led to a partial shutdown of the pipeline.
Petronas CEO Tengku Muhammad Taufik stated that while there are no plans to reroute the pipeline near Lawas, the remaining SSGP will continue serving Sabah customers.
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By GlobalDataThe first major incident occurred in June 2014, when a fatal fire broke out along the SSGP in Lawas, Sarawak, prompting the initial shutdown.
In January 2015, Petronas confirmed it was conducting a comprehensive evaluation to ensure the integrity of the pipeline, stressing its “unwavering commitment to the safety of the SSGP as well as the community residing around the pipeline”.
Subsequent incidents included a gas leak in January 2018, with Petronas denying local reports of an explosion.
Another leak followed in May 2019, and a pipeline rupture with a fire incident occurred in January the following year.
The most recent disruption in September 2022 forced Petronas to declare force majeure on the supply of gas to Malaysia LNG Dua, part of the nearly 30 million tonnes per annum liquefied natural gas (LNG) complex at Bintulu, due to a pipeline leak attributed to soil movement and subsidence.