SIPITANG OIL AND GAS INDUSTRIAL
PARK
INVESTMENT POTENTIALS
AND OPPORTUNITIES
4TH Sabah Oil & Gas Exhibition and Conference
April 13, 2015
MAGELLEN SUTERA, KOTA KINABALU
Presented by
Haji Abdul Kadir Bin Haji Abdullah
@O.K.K. Haji Daimsal
1
SOGIP - LOCATION
SOGIP is located in the District of
Sipitang, South –West of Sabah,
Malaysia
WHAT AND WHERE
IS SOGIP
• SOGIP is the first and only industrial park in
Sabah dedicated to oil & gas activities.
• A state-owned company chaired by the Chief
Minister of Sabah called Sipitang Oil & Gas
Development Corporation Sdn Bhd (SOGDC) was
formed in 2010 to spearhead the development
of SOGIP’s 4,065 acres of land in Mengalong,
Sipitang.
• SIPITANG is 145km from capital city of Kota
Kinabalu and SOGIP is 12km from Sipitang Town.
LABUAN
SABAH FOREST INDUSTRY
BRUNEI
D.S.
SOGIP
SFI
2
SOGIP - ADVANTAGES
Availability of feedstock of natural gas from Sabah Sarawak Gas Pipeline (SSGP), urea and
ammonia from SAMUR and ‘MARKISA’ in SOGIP and methanol from Labuan.
BRUNEI
SAMUR
SOGIP Layout Masterplan with labels.png
•
WHY SOGIP
•
•
•
•
•
Proximity to Sabah’s offshore production facilities (Kikeh,
Gumusut/Kakap, Kebabangan)
The site offers logistic advantages being located at a sheltered
area of Brunei Bay, nearby to major shipping lanes and close
proximity to Labuan and Brunei
Natural water depth (16m-20m) which can cater Single Buoy
Mooring (SBM) for VLCC’s
Opportunity of tax incentives to SOGIP Investors
SOGIP like Pengerang project in Johor is categorised under EPP 13
of NKEA OGE Sector.
Readily available market for agriculture since it’s
the major industry in Sabah.
3
Conceptual Layout Plan
4
SOGIP MASTER PLAN
SOGIP is proposed to be positioned as Agro-based petrochemical complex
taking into consideration of gas characteristic as well as demand in Sabah
Key consideration in positioning SOGIP as Agro-based
Petrochemical Hub
Premier Oil and Gas Industrial Park of Choice for Agro-based
Petrochemical in Asia Pacific
Base Feedstock
 Methane rich composition of natural gas
limits the options to;
 Ammonia and Urea or,
 Methanol
 Sabah as one of major producers of Palm
and Rubber provide huge local demand for
fertilisers from Sipitang.


Minimise capital outflow by
replacement of imported fertiliser with
locally produced
Huge potential for local Sabah
companies to be involved in the
development of downstream urea
ammonia and methanol derivatives .
UREA
AMMONIA
Phase 1
Phase 2
Downstream Urea Derivatives :
i.
NPK
ii. Melamine
iii. Urea formaldehyde resin
Downstream ammonia derivatives
:
i.
Ammonium Nitrate
ii. Diammonium Phosphate
iii. Ammonium Chloride
iv. Ammonium Sulphate
/Caprolactam
v. CO2 Derivatives i.e. Acetal
Resins, Dry Gas, EOR
METHAN
OLl
Oil
Tankage,
Refinery
Methanol
SMIs Derivatives
Reticulation /Gas Distribution
Centralised Utilities Facilities (CUF)
Road and Infrastructure, Port and Jetties, Storage and Warehouse
Central Water Supply
Other
development
subject to
availability
of Gas
INVESTMENT SCENARIO
Sabah gas is rich in methane, hence limiting petrochemical industry development to
ammonia, urea and methanol
Ammonia is a more viable petrochemical route due to regional and local market
demand as well as volume availability
Fertilizer:
agriculture
Methanol
 Oversupply of market
 Insufficient gas volume
for world scale plant
Natural Gas composition in Peninsular and
Sabah
Composition
Caprolactam
Peninsular
Sabah
Methane
79%
91%
Ammonium
Sulphate
Ethane
11%
4%
Propane
5%
2%
Diammonium
Phosphate
Butane
3%
1%
C5 +
2%
0.1%
-
1.9%
Inert Gas
Fertilizer:
palm/rubber
Methane
Rich
Natural
Gas
Ammonia
Ammonium
Nitrate
Power
Generation
Fertilizer:
cash crops
NPK
Urea
Melamine
Ammonium
Chloride
UF
Artificial
fibre
 Power demand in Sabah is
limited
 100mmscfd = 600 MW
Note : ethane volume is not sufficient to develop ethylene and derivatives complex
UF – Urea Formaldehyde
Huge
local
demand
INVESTMENT SCENARIO
Development of SOGIP as integrated petrochemical and fertilisers hub provide
opportunity to substitute imported fertilisers for a more competitive agricultural
industry in Sabah and Malaysia
Import remains high whilst value of import fluctuates in line with
commodity prices
Import Quantity of Fertilisers into Malaysia 2004-2020
KMT/year
Value
RM Mil/year

Approx. 30% or 500KMT/year of the
total Malaysia ’ s consumption of the
identified fertilisers is consumed in
Sabah in year 2012.

By 2020, consumption in Sabah is
forecast to exceed 600KMT/year.

Impact of substitution of imported
fertilisers with locally produced to
Sabah’s cash flow estimated at;



Source : MPOB, Lembaga Getah Malaysia, Lembaga Kemajuan Malaysia,
Lembaga Ternak Negara, Department of Agriculture, CRU Group, HIS, IFA
2012: RM0.760 Billion
2020: RM1.200 Billion
Impact to Malaysian fertiliser import
substitution : RM4.0 Billion
METHANOL DERIVATIVES
1. Pentaerythrito
2. Trimethylolpropane (TMP
3. 1, 4-Butanediol (BDO)
4. Urea Formaldehyde Resin (UF)
5. Phenolic Resin
6. Polyformaldehyde Resin (POM)
7. Melamine-Formaldehyde Resinl
Formaldehyde
Formic Acid
1. Unsaturated Polyester Resin (UPR)
2. Alkyd Resin
3. Polyurethane Resin (PU)
4. 1,4 - Butyrolactone (GBL)
5. Tetrahydrofuran (THF)
6. Polyester Polyol
7. Polyvinyl Pyrrolidone (PVP)
8. Polyester Resin
9. Polybutylene Terephthalate (PBT)
Dimethoxymethane
1. Poly(Methyl Methacrylate)
(PMMA)
2. Acrylic Resin
Methyl Methacrylate
Methyl Tertiary Butyl Ether (MTBE)
Methanol
Acetic Acid
N,N-Dimethylacetamide (DMAC)
1. Glyceryl Triacetate
2. Ethyl Acetate (EAC)
3. Butyl Acetate (BAC)
4. Vinyl Acetate Monomer
5. Chloroacetic Acid
6. Isopropyl Acetate (IPAC)
7. Acetic Anhydride
Dimethylformamide (DMF)
Chloromethane
1. Dichloromethane
2. Chloroform
3. Carbon Tetrachloride
4. Methylchlorosilane
Dimethyl Terephthalate (DMT)
1. Polyethylene Terephthalate (PET)
Confiden al
1. Polyvinyl Alcohol (PVA)
2. Polyvinyl Acetate
Crude oil and petroleum product storage terminal
With the recent trends, petrochemical development in
SOGIP is poised to bring benefit to the community
Financial
Services
 Attract foreign investments into Sabah
with key infrastructure and utilities;
Construction
Engineering
Services
Residential &
Commercial
Procurement
SOGIP
Downstream
Manufacturing
Transportation
Training Centres
support SOGIP vision
 Create spin-off effects to spur further
Multiplier
Efefct
economic activities
 Create employment opportunities for
Recreational
Facilities
locals
 Provide opportunities for Sabah
companies to participate
Tourism
CURRENT SITUATION AND DEVELOPMENT
OGE EPPs, Manpower and Years
2013
1. Kimanis
Power
Plant (300)
2. SOGT/SSG
P (180)
2014
1. SOGIP SAMUR
(400)
2. Lahad Datu
Re-Gas
Terminal (60)
3. Markmore
Group (200)
480
 Sabah having the Highest % of Foreign Labours (37.5% in
2011, IDS Study 2012);
2015-2020
1. Lahad Datu Power Plant
(300)
2. PETRONAS Ammonia Plant
2 (180 by 2018)
3. Gas Separation (97)
4. Sipitang Chemicals (110 by
2015)
5. Pristine Oil (500 by 2017)
6. Petro Asia Pac Sdn Bhd (400
by 2017)
7. Aplio Refinery Sabah (523 by
2020)
660
Sabah: Work Force Profile
 Having the Youngest Working Age Group (69.2% aged 39
and below);
 75% of Unemployed Persons are 30 and below;
 Most Jobs are Low Skilled (67.8% PMR and below); and
 Low Paid (20% lower than Sarawak and 45% lower than
Peninsular Malaysia.
1090
Summary of Sabah Work Force Profile
2007
2008
2009
2010
2011
Labour Force ('000)
1,267.7
1,294.2
1,345.3
1,589.9
1,640.0
Employed ('000)
1,198.6
1,230.5
1,270.6
1,507.8
1,554.8
Unemployed ('000)
69.2
63.8
74.6
82.1
85.2
Unemployment Rate (%)
5.5
4.9
5.5
5.2
5.2
Labour Force Participation Rate (%)
65.3
64.5
65.1
65.2
66.7
2010 yearly data has been revised based on revised population estimates that take into
account on recent trends of fertility and migration. Data excludes Labuan.
*source: Sabah Yearbook of Statistics 2011
INFRASTRUCTURE & SUPPORTING FACILITIES PLAN
Basic infrastructure will be constructed on site and supporting services facilities is being
planned in SOGIP
Road network within SOGIP will be of
Roads
Ports
Infrastructure
Facilities
Electricity
supply
Water
supply
Supporting
Facilities
an industrial standard to cater heavy
machineries and lorries
Multipurpose jetty will be constructed
for the overall use and outbound of
products for the users of SOGIP
There will be Centralized Utilities
Facilities (CUF) to generate electricity
and planning to construct new 275kV
transmission line
By Q1 2014, a new water treatment
plant will be completed with capacity
of 40MLD
Logistics &
Medium and
Light Industry
Warehousing and storage facilities
services & Maintenance Service
Providers
Schedule
Waste
Management
Handling scheduled waste within
SOGIP
Human
Resource
Training Facility
Centre to conduct and provide human
capital training for industries within
SOGIP
Commercial
Services
Government services, Office
complexes
12
SOGIP – TAX INCENTIVES
On 1st Nov 2012, Federal Treasury has approved the following blanket financial incentives for
the relevant activities in Sipitang Oil & Gas Industrial Park. Promotions for SOGIP was also
initiated by SOGDC.
•
The following incentive policy applies to applications received by SEDIA up until 31st December 2020.
Source: SEDIA website; http://www.sedia.com.my
13
LAYOUT PLANNING
Development will be supported by SOGIP, Relevant agencies and Private Sectors
DEVELOPMENT BY SOGIP:
Internal Infrastructure
• Roads (Single carriage way to be
expanded in the future)
• Drainage
• Street light
• Fibre optics network
• Detention pond
DEVELOPMENT BY PRIVATE &
RELEVANT AGENCIES:
• CUF and Transmission Lines
• Water Supply
• Port
DEVELOPMENT BY INVESTORS:
Zoning criterion is developed to segregate the sectors based on the following: Safety consideration (flammable, toxic and explosiveness of material)
 Logical layout of manufacturing operations to reduce piping runs.
 Reduce traffic congestion and unnecessary movement within the park limit by clustering related
industries
• Plot area
 Site clearance
 Earthworks
 Site preparation
 Internal Roads & Drainage
(Plant area)
INVESTMENT SCENARIO-DEVELOPMENT PLAN
Development plan for type of investments in SOGIP
INDUSTRIES
PETROCHEMICAL & FERTILIZERS
▪ MARKISA (Ammonia Plant)
▪ Ammonia Derivatives
▪ Urea Derivatives
▪ Methanol Derivatives
▪ Bio-based Industries
BULK STORAGE & HEAVY INDUSTRIES
▪ Bulk Storage
▪ Bulk Products Distribution Terminal
▪ Oil Refinery
▪ Fabrication Yard
▪ Ship Repair Services
SUPPORTING INDUSTRIES
Transportation
Warehouse (Storage Facilities)
Packaging
Printing
SMI
▪
▪
▪
▪
▪
UTILITIES & INFRASTRUCTURE
▪ Road, Streetlights & Drainage
▪ Electricity , Water & ICT
▪ Centralized Utilities Facility (CUF)
▪ Gas Reticulation
▪ Port & Jetty
▪ Phase 1
▪ Phase 2
▪ Phase 3
▪ Phase 4A
▪ Phase 4B
Phase 1
Phase 2
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Investments in SOGIP
Phase 1: A. Planned investment
1.Fertilizers
• Ammonia Plant
• Ammonia Derivatives
• Urea Derivatives
2.Utilities
•
•
Centralized Utilities Facility (CUF)
Gas Reticulation
3.Bulk Storage
• Bulk Oil Storage
• Bulk Products Distribution
Terminal
4.Other Investment
• Bio-based industries
• Fabrication (shipping, onshore &
offshore structures)
• Refinery
Phase 1: B. Planned Development by SOGIP
1.Infrastructure
• Road & Street Lights
• Drainage
• Port and Jetty
• Telecommunications
Phase 2: Subject to future availability of gas
1.Methanol Derivatives
2.Ammonia Derivatives
3.Urea Derivatives
4.Other heavy industries
Link to Port & Jetty
LAYOUT PLANNING
Development will be supported by SOGIP, Relevant agencies and Private Sectors
DEVELOPMENT BY SOGIP:
Internal Infrastructure
• Roads (Single carriage way to be
expanded in the future)
• Drainage
• Street light
• Fibre optics network
• Detention pond
DEVELOPMENT BY PRIVATE &
RELEVANT AGENCIES:
• CUF and Transmission Lines
• Water Supply
• Port
DEVELOPMENT BY INVESTORS:
Zoning criterion is developed to segregate the sectors based on the following: Safety consideration (flammable, toxic and explosiveness of material)
 Logical layout of manufacturing operations to reduce piping runs.
 Reduce traffic congestion and unnecessary movement within the park limit by clustering related
industries
• Plot area
 Site clearance
 Earthworks
 Site preparation
 Internal Roads & Drainage
(Plant area)
Legend :
Phase 1
Phase 4
Phase 2
Break
Waters
Phase 3
PHASE 4B
Back
18
More information on SOGIP , visit www.sogip.com.my or email to info@sogip.com.my for any enquiries .
THANK YOU
19