Based on extensive studies and planning, the State Government of Sabah are now investing the equivalent of 1 billion US Dollars in a gas utilisation project which will stop the venting of associated gas produced offshore Sabah and broaden the state's economy base.

The project involves the installation of new platform facilities adjacent to existing oil production platforms in the Samarang and Erb West fields for collection, processing and transmission of up to 90 mmscfd of gas to the island of Labuan where gas will be utilised by a 47MW combined cycle power plant, a 2000 ton/day hot briquetted iron plant and a 2000 ton/day methanol plant presently under construction.

The project is targetted to come on stream second quarter of 1984.

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