July 19, 2012. Sabah became the first state in Malaysia to offer compressed natural gas (CNG) via a virtual pipeline system.

   Chief Minister Datuk Seri Musa Aman said the approach undertaken by Sabah Energy Corporation (SEC) would enable a wide spectrum of users to benefit from the project. He said it is accessible to users who are located up to 70km from SEC''s station at the Kota Kinabalu Industrial Park. He believes Sabah Energy Corporation is also currently exploring the possibility of bringing CNG to the east coast of Sabah and the Sipitang area.

   As SEC would offer the natural gas cheaper than other fuels, Musa said it complemented the state''s effort to make business activities in Sabah more cost competitive. He also said CNG was a cleaner burning fuel to other types of other fossil fuels and reduced pollution.

   According to the Minister, this is very important when viewed from the context of the state government''s focus towards ensuring that growth sectors practice initiatives that stress on environmental protection and sustainability. He added that such a move also fits in with their focus on promoting Sabah as an eco-tourism destination.

   Meanwhile, SEC Chief Executive Officer Datuk Harun Ismail said RM13.3 million (USD 4.2 million) was injected in the project. He explained that with this system, capital intensive underground pipelines, which is the traditional method of gas distribution, can be avoided and the reach of customers can therefore be extended. Harun also said the price of natural gas delivered to the customers was cheaper than alternative fuels by 50 per cent.