Sabah Energy, Petronas sign HoA to develop Mutiara Cluster, boost East Coast gas supply

KOTA KINABALU (Feb 10): Sabah Energy Corporation Sdn Bhd (SEC) and Petroliam Nasional Berhad (Petronas) have exchanged a Heads of Agreement (HoA) to develop the Mutiara Cluster, a strategic offshore gas resource off the coast of Sandakan, strengthening long-term energy security for Sabah’s East Coast.

The HoA was signed by SEC chief executive officer Datuk Adzmir Abd Rahman and Petronas senior general manager for integrated hydrocarbon management Ziaril Faiz Zakaria in Kuala Lumpur.

The exchange was witnessed by Chief Minister Datuk Seri Panglima Hajiji Noor, Petronas president and group CEO Tan Sri Tengku Muhammad Taufik Tengku Aziz, state secretary Datuk Seri Panglima Safar Untong, SEC chairman Datuk Annuar Ayub, and Petronas Malaysia Management (MPM) senior vice-president Datuk Bacho Pilong.

Under the agreement, SEC and Petronas will establish a commercial and collaborative framework leading to a future Gas Sales Agreement, enabling the development and monetisation of gas resources from the Mutiara Cluster, with first gas targeted for early 2029 to meet Sabah’s long-term energy needs.

Currently, natural gas supplied by SEC powers about 86 per cent of Sabah’s electricity, primarily on the West Coast, while the East Coast relies on small-scale liquefied natural gas (LNG) deliveries.

The Mutiara Cluster is expected to provide scalable, reliable gas supply to the East Coast, enhancing energy security, supporting industrial development in Sandakan, and stimulating economic growth.

Beyond infrastructure, the HoA reflects a shared commitment to responsibly unlock Sabah’s indigenous gas resources and foster a balanced, resilient energy market.

The project aligns with the Sabah Maju Jaya (SMJ) 2.0 agenda, contributing to sustained investment, job creation, and long-term economic growth for the state.