Terminal still in operation

PETALING JAYA: The Sabah Oil and Gas Terminal is continuing with its operations though its supply to the Sabah-Sarawak interstate pipeline had been shut down following the explosion in Lawas.

An official with knowledge of the project said raw gas from the terminal in Kimanis, some 40km south of Kota Kinabalu, was still flowing to the two independent power produ­cers (IPPs) – Kimanis Power Sdn Bhd and SPR Energy (M) Sdn Bhd.

The terminal began channelling oil and gas from Sabah’s offshore fields early this year.

It is capable of producing 1.25 million standard cubic feet of gas and 260,000 barrels of oil daily.

A joint venture between Petronas Gas Bhd and Yayasan Sabah’s NKG Consortium Bhd, Kimanis Power Sdn Bhd generated 100mW of electricity last month.

The SPR Energy plant produced another 100mW of power for state utility firm Sabah Electricity Sdn Bhd.

Pipelines International, a magazine for the pipeline industry, reported the pipeline was one of the most difficult projects that India-based contractor Punj Lloyd had built.

In June 2012, the magazine quoted Punj Lloyd executive vice-president P.K. Chand as saying that tough mountain terrains, dense rain forest and oil palms, constant rain and stringent regulatory framework had complicated the project.

“The terrain is extremely harsh and is made up of rocky, mountainous slopes with an altitude of up to 3,300ft (1005m), dense forests, swamps and palm oil plantations.

“Steep, 76 degree slopes have been encountered and the undula­ting terrain has resulted in 39% of the pipeline consisting of field cold bends – a total of 16,380 bends,” Chand said.

Punj Lloyd was hired by Petronas in 2008 to build the terminal and the Sabah-Sarawak interstate gas pipeline.

The pipeline spans a distance of 512km.

The 36-inch pipeline was constructed using API 5LX70 steel grade pipes, with a thickness range of 14mm, 17mm and 20mm. They had a design pressure of 96 bar, Pipelines International reported.