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Royal Dutch Shell Plc .com: Big pipeline needed in Sabah

From Upstreamonline
By Russell Searancke

Malaysian energy giant Petronas will build a 480-kilometre gas pipeline as part of the Sabah Oil and Gas Terminal (SOGT) integrated project.

The project, which Petronas said it was undertaking with its production sharing contract partners, involves the construction of a subsea pipeline from offshore Sabah to a new onshore oil and gas processing terminal in Kimanis, Sabah, with a storage capacity of 300,000 barrels per day of oil, and an onshore gas terminal.

The processed gas from the terminal would be transported via the 480-kilometre gas pipeline to be built from Kimanis to the Petronas LNG Complex in Bintulu, Sarawak.

Offshore Sabah has become Malaysia’s hot spot for deep-water oil exploration. Production from Murhpy Oil’s Kikeh field is expected on stream in the third quarter of 2007, followed by Shell’s Gumusut-Kakap and Malikai projects by 2010 and 2012 respectively, said Petronas.

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