Malaysia: Finance Ministry reveals Muhyiddin-led PN revived TSGP pipeline project

  • The previous Perikatan Nasional (PN) government under former premier Muhyiddin Yassin had revived the Trans Sabah Gas Pipeline (TSGP) project, which was terminated by its predecessor Pakatan Harapan in 2018.
  • According to Zafrul, the decision to revive TSGP was made in a cabinet meeting on 10 Feb 21.
  • “While for the MPP, further study and negotiations are being conducted with its contractor China Petroleum Pipeline Bureau (CPPB), to determine a clear way forward for this project,” he said.
  • The construction of TSGP and MPP were approved by the previous BN administration, who awarded the projects to the CPPB in Nov 16.
  • The 662km TSGP would have stretched from the Kimanis Gas Terminal to Sandakan and Tawau. The 600km MPP, meanwhile, would have connected various petrochemical projects in Malacca and Port Dickson, Negeri Sembilan to Jitra, Kedah. Negotiations with project owners
  • A total of MYR8.3bn – 88% of the construction cost – was paid out for the two projects, despite just 13% of work completed.
  • SSER was fined for failing to comply with Bank Negara conditions in relation to the pipeline projects in 2019.

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