The Sabah Energy Corporation Sdn Bhd (SEC) has signed a heads of agreement (HoA) with Esteel Enterprise Sabah Sdn Bhd (Esteel Sabah) for a RM20 billion green steel project at the Sipitang Oil and Gas Industrial Park (Sogip) in Malaysia.
Under the agreement, SEC will supply 100 million standard cubic feet per day (mmscfd) of natural gas to Esteel Sabah’s steel manufacturing plant and an additional 50 mmscfd for the plant’s power generation over the next 20 years.
The Green Steel project is a three-phase project which aims to reduce carbon emissions by 70 per cent. Phase 1 of the project is estimated to cost RM8.97 billion and is expected to commence operations in 2024 and will be completed by 2026.
