IMPACTS AND BENEFITS
SOGIP is an integrated industrial area designated for oil & gas related industry and Heavy industry. This industrial park will provide several impacts and benefits to the state of Sabah as the following:
- Reduce economic imbalances between Peninsular and Sabah through direct investment (domestic and foreign) and job creation.
- Economic spillover to neighbouring districts such as Beaufort, Tenom and Keningau.
- Support state key result area; especially in four areas – regional economic imbalances, creating high value added activities, creation of conducive investment climate in Sabah and pool of creative and innovative human capital.
- Realization of Sabah industrial action plan through downstream development based on clustering concept.
- Creation of better and secured employment for the people of Sabah in the oil and gas sectors.
- Strengthen economic development through synergy with refinery and petrochemical projects in PulauMuaraBesar, Brunei.
- Reduce Sabah imports of fertiliser since natural gas can be converted into fertiliser through petrochemical process.
Advantages of Oil & Gas Industrial Park in Sipitang
SOGIP is to be developed as an integrated industrial area designated for oil and gas industry. Below are the key strengths for SOGIP being an integrated industrial park:
- Natural gas is available at the door step
- Sabah state and PETRONAS forms strong partnership in the development
- Availability of sufficient development land : 4,065 acres
- Strategic location: nearby to shipping lane – close proximity to Labuan ,Brunei
- Sheltered bay: sufficient water depth (16 m – 25m) to cater for SPM for VLCC’s and availability of vessel anchorage
- Customize tax incentives for SOGIP tenants
- Minimalsocioeconomic impact: relatively unpopulated- minimal population relocation
- Gas city gate within the industrial park tap from the Sabah Sarawak Gas Pipeline
- Proximity to trunk road that connects Sarawak and Brunei to Sabah
- PETRONAS has chosen SOGIP as a place for their fertilisers hub thus provide opportunities for investor to create downstream industries to produce a variety of fertilizer product.
- Agriculture is a major industry in Sabah thus there is a demand for fertiliser locally.