Sabah has completed the acquisition of a 25% equity stake in Petronas PFLNG 3, the company developing the $3.1 billion nearshore floating liquefied natural gas (FLNG) project known as ZLNG, now under construction in East Malaysia.
The transaction was carried out through SMJ Energy, the state-owned energy company of Sabah, in partnership with Petronas LNG. Sabah Chief Minister Hajiji Noor said the acquisition represents a major milestone in enhancing Sabah’s role in upstream and downstream energy ventures.
“This acquisition not only reinforces the close working relationship between Sabah and Petronas but also sets the foundation for future strategic collaborations in the oil and gas industry,” Hajiji said.
The ZLNG facility, designed to produce 2 million tonnes of LNG per annum, will be located at the Sipitang Oil and Gas Industrial Park (SOGIP). Operations are expected to commence in the second half of 2027.
Construction of the floating liquefaction facility is being undertaken by Samsung Heavy Industries of South Korea and JGC of Japan.
Hajiji said the state’s participation in PFLNG 3 aligns with Sabah’s broader ambition to secure a stronger foothold in key energy projects within its borders, ensuring greater revenue generation and long-term sustainability for its energy sector.
