Sabah must anchor downstream energy development within state, says Warisan man

KOTA KINABALU (April 10): Sabah’s downstream energy ambitions must be anchored within the state to ensure it captures the full economic value of its natural resources, said Warisan vice president Datuk Junz Wong.

He emphasised that any proposed oil refinery should be developed in Sabah, identifying the Sipitang Oil and Gas Industrial Park (SOGIP) as the most strategic and ready platform for such an investment.

Wong noted that Sabah already possesses the core infrastructure and industrial ecosystem required to support large-scale downstream oil and gas development, including an established industrial base, gas linkages and phased port facilities.

“Sabah is not starting from zero. We already have SOGIP, a purpose-built oil and gas industrial hub with the capacity to support large-scale downstream development,” said Wong.

The Tanjung Aru assemblyman added that the facility is strategically located about 12 kilometres from Sipitang town and approximately 150 kilometres from Kota Kinabalu.

He said earlier plans announced this year included a proposed refinery within SOGIP with a capacity of up to 150,000 barrels per day, alongside storage facilities capable of holding up to three million cubic metres of crude oil and refined petroleum products.

“The industrial park, which spans more than 5,500 acres, is Sabah’s first designated oil and gas and heavy industries hub, strategically positioned along the deep waters of Brunei Bay,” he said.

Wong said ongoing global energy uncertainty, compounded by geopolitical tensions, have highlighted Malaysia’s reliance on oil and gas infrastructure located outside Sabah, despite the state being one of the country’s key energy producers.

While acknowledging recent suggestions, including those by former chief minister Tan Sri Harris Mohd Salleh for a refinery in Labuan, he maintained that Sabah remains the more viable and strategic option.

“While we recognise the rationale behind proposals for Labuan, Sabah itself is fully capable of hosting such a development,” he said.

“The priority must be to ensure Sabah captures the full economic value of its resources.

“It’s not about location, it’s about Sabah getting its fair share,” he said.

He emphasised that any refinery project must be commercially viable, transparently planned, and capable of delivering tangible benefits to Sabahans, particularly in terms of job creation, industrial growth and participation in the downstream value chain.

“For decades, Sabah has powered the nation, yet we remain largely excluded from the value-added segment.

“This must change if we are serious about fairness and long-term resilience,” he said.

Wong also urged the federal government to move beyond rhetoric and conduct a transparent feasibility study, with full involvement of the Sabah government and industry stakeholders.

“The question is no longer whether Sabah deserves downstream capacity, but whether there is the political will to realise it within Sabah itself,” he said.