Natural gas will help reduce cost, preserve environment

KOTA KINABALU: The usage of natural gas in the industry will help reduce cost and preserve the environment.

Speaking at the Commissioning ceremony of Sabah Energy Corporation Sdn Bhd (SEC) Compressed Natural Gas (CNG) Project via Virtual Pipeline System at Colourcoil Industries Sdn Bhd in Telipok yesterday, Resource Development and Information Technology Minister, Datuk Siringan Gubat said that using the cleaner fuel is akin to contributing to the environment.

“As compared to the traditional fuel source, natural gas is a much cheaper and cleaner fuel. This will translate directly into cheaper operating cost, hence better bottom line. At the same time by using natural gas, the mother earth will thank you for being green.

“We will also be able to preserve our pristine environment and maintain our position as preferred eco-tourism destination,” he said adding that using natural gas is in line with the government’s policy to encourage the use of cleaner energy to drive economic growth.

Compressed Natural Gas Project via virtual pipeline system is a natural gas distributing mode for distant customers, where ‘mother station’ supplies natural gas to ‘daughter stations’ at customers’ premises.

SEC Chief Executive Officer, Datuk Harun Ismail explained that the virtual pipeline system works by having a mother station which is at SEC’s terminal in KKIP.

“CNG is supplied to the customers to their purpose-built daughter stations by lorries. And in order to ensure seamless supply of the fuel, a daughter station monitors the level of gas and automatically order for supply when the gauge is low.

“Upon receiving the order, a lorry laden with CNG will be dispatched to the daughter station from the mother station. The CNG laden containers will roll from the lorry, down to the daughter station purpose-built platform, before the empty containers roll from the platform onto the lorry,” he said adding that all the process are being done without stopping the flow of CNG to the customer’s operations.

Harun said that SEC chose to employ the system due to the high cost involved in building physical piping system to the customers, which renders it uneconomical.

According to him the virtual pipeline system is a proven technology and has been used successfully in many countries including Argentina, Brazil, Bolivia, India, Philippines, and Singapore.

“The technology provider of the virtual pipeline system is GNC Galileo of Argentina, which complies with accepted international standards such as ISO 9001 and ISO 15500.

“The system was officially launched by the Chief Minister, Datuk Seri Musa Hj Aman in July 2012, and the first gas roll out was achieved 11 months later on June 10, 2013,” he said adding that SEC has a complete team of trained and competent engineers and technicians to assist customers on the gas usage and the supply system.

Harun disclosed that Colourcoil Sdn Bhd is one of seven earliest customers who signed the sale and purchase agreement with SEC.

Also present at the ceremony were Argentine Ambassador to Malaysia, Maria Isabel Rendon, CNG Galileo S A, Asia Pacific Regional Manager, Juan Ojenguren, and Colourcoil Sdn Bhd Managing Director, Roger Ling.

 

New Sabah Times

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Sabah offers compressed natural gas

Photo: Insight Sabah

KOTA KINABALU: Sabah has become the first state in the country to offer compressed natural gas (CNG) via a virtual pipeline system.

Chief Minister Datuk Seri Musa Aman said the approach undertaken by Sabah Energy Corp (SEC) would enable a wide spectrum of users to benefit from the project. 

“It is accessible to users who are located up to 70km from SEC’s station at the Kota Kinabalu Industrial Park.

“I believe SEC is also currently exploring the possibility of bringing CNG to the east coast of Sabah and the Sipitang area,” he said when launching the project.

As SEC would offer the gas at a cheaper price compared with other fuels, Musa said the project complemented the state’s effort to make business activities in Sabah more cost-competitive.

He also said CNG was a cleaner burning fuel compared with other types of fossil fuels and reduced pollution.

“This is very important when viewed from the context of the state government’s focus towards ensuring that our growth sectors practise initiatives that stress on environmental protection and sustainability.

 “Such a move also fits in with our focus to promote Sabah as an eco-tourism destination,” he added. – Bernama

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Natural gas as an alternative source of energy

Deputy Chief Minister Dr. Yee Moh Chai (centre) attended the half-day talk on Alternative Energy Sources. He is accompanied by President of the Institute of Engineers Malaysia Sabah (IEM) Lo Chong Chiun (left) and CEO of Sabah Energy Corporation Harun Ismail (right)

As the scarcity of energy becomes increasingly more pressing  worldwide today, the search for an alternative and renewable energy source intensifies.

Government-linked Sabah Energy Corporation, which is at the forefront of the natural gas sector in Sabah, organised a talk on the "Alternative Energy Source - Compressed Natural Gas" today. Many engineers and stakeholders of the natural gas sector attended the talk.

In his welcoming remarks, Deputy Chief Minister cum Minister of Resource Development and Information Technolgy Datuk Dr. Yee Moh Chai said the discussion on finding an alternative source of energy is is particularly relevant for Sabah as the state has a large natural gas reserve.

He said with more than 12 trillion cubic feet of gas reserves, Sabah is able to fuel the growth of various industries over a few decades.

Dr. Yee told the meeting  that a renewable energy source is not only important in the light of the increased cost of energy, it is also in line with the growing environmental awareness of the  need to switch to energy that is environmentally friendly.

Natural gas is a hydrocarbon gas that is lighter than air. It is a clean alternative as it produces relatively low pollutants and has fewer emissions than coal or oil.

Natural gas is relatively cheap as the natural gas market is still not a global one.

The promotion of natural gas usage is consistent with the government's five-fuel policy that is aimed at avoiding over dependence on a single energy source. - Insight Sabah

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Cheaper, cleaner gas for SMEs launched

KOTA KINABALU: Sabah Energy Corporation Sdn Bhd (SEC) has embarked on a new technology to supply compressed natural gas via a virtual pipeline system.

SEC Chief Executive Officer Datuk Harun Ismail said the RM13.3 million virtual pipeline system is an economical approach to make natural gas, which is a cheaper and environmentally friendlier fuel, to a broader spectrum of customers whose premises are located at distances as far away as 70km from SEC’s existing premises at Kota Kinabalu Industrial Park.

The launch of the virtual pipeline system by Chief Minister Datuk Seri Musa Aman yesterday made Sabah the first state in the country to offer compressed natural gas at a price that is up to 50 per cent lower than that of alternative fuels.

With the system, capital intensive underground pipelines that are traditionally used for gas distribution can be avoided and the reach of customers can be extended, Harun told reporters during the launching ceremony yesterday.

He said that so far, the response to the system has been very good and SEC expects to have another two to three companies coming on board soon.

“This system is recommended to SMEs which has boilers and factories and uses high level of burning fuel,” Harun said.

Asked if the system could be extended farther than the 70km radius, Harun said they have to set a limit because of the logistical constraints, such as the road system.

“This is a virtual pipeline, we need to supply continuously as if there is a pipeline there, so if we go beyond 70km, we would not be able to meet the requirement unless the road system is improved,” he explained.

According to Harun, the technology provider of the virtual pipeline system is GNC Galileo of Argentina, where the system has been used for over 20 years, while similar systems are being used in other parts of South America.

GNC Galileo will be working with its Malaysian agent Frugas Synergy Sdn Bhd and SEC in providing continuous technical back-up for the system, he said.

SEC has a complete team of trained and competent engineers as well as technicians to not only operate the system but also assist customers in their studies to convert their existing equipment to use natural gas.

“It does not cost much to convert the equipment but in the long run, the savings will be higher,” he said.

Commenting on Musa’s hope that SEC will expand this system to the east and south of Sabah, Harun said the gas that will be landing in Lahad Datu is LNG, not natural gas.

“We might be using a different kind of technology, not CNG because in Lahad Datu, the gas landed will be in the form of LNG, so therefore we need to go in a different mode of system. But this is too early to discuss.

“We are working with our partner and once the LNG landed in Lahad Datu, we probably would be able to cover the district, Tawau and Sandakan,” he said.

Meanwhile, the Chief Minister said he would like to see sectors that use highly polluting fuels to seriously consider switching to natural gas.

“By doing so, we can all enjoy a cleaner environment,” Musa said.

He pointed out that natural gas is a cleaner burning fuel compared to other types of fossil fuel, so using natural gas would therefore translate into less pollution.

“This is very important when viewed from the context of the State Government’s focus towards ensuring that its growth sectors practise initiatives that stress on environmental protection and sustainability, he said.

“Such a move also fits in with our focus on promoting Sabah as an eco-tourism destination,” he said.

On the project, Musa said he was happy to note that SEC has taken the initiative to introduce the technology in Malaysia.

“Apart from the fact that our state will be the first in Malaysia to adopt this approach, I take note that natural gas, a resource that is so vital to us here in Sabah, can be brought to a wider spectrum of users,” he said.

Also present at the launch were Deputy Chief Minister and Minister of Resource Development and Information Technology Datuk Dr Yee Moh Chai and Sabah Energy Corporation Chairman Au Kam Wah.

Source: http://www.sabahtoday.com/?p=9260

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PM: World urgently needs new energy usage paradigm

KUALA LUMPUR: The world urgently needs a new paradigm of development that reflects changing times, namely the huge spike in demand for consumer items that will have an enormous impact on the way the world uses its energy, says Prime Minister Datuk Seri Najib Tun Razak.

He believed natural gas had an important role within the new paradigm, sustaining development at the same time decoupling it from rising emissions.

“We simply can’t afford to allow today’s emerging economies to follow the same ‘Grow First, Clean Later’ model that the early industrialisers adopted.

“It may not be the perfect solution but it is without doubt one of the best we have today, offering the lowest carbon footprint of all the fossil fuels and producing less than half the carbon dioxide of coal,” he said when opening the 25th World Gas Conference themed, ‘Gas Sustaining Global Growth’.

The prime minister said one of the strongest arguments in favour of increasing the use of natural gas was the fact that its environmental benefits would be felt immediately.

On gas prices, Najib said efficient pricing of energy needed to be seen in the broader context of economic reforms and properly sequenced in its implementation.

“This would generate a sufficient buffer of income growth that will in turn enable the population to more easily absorb higher end-use energy prices.

“This in turn will help ensure that price reform is more readily accepted by the wider population,” he said.

Najib also stressed the world was grappling with an economic slowdown in three years for the second time.

Unless more urgent steps are taken to address the systematic weaknesses that act as a barrier to self-sustaining global growth, nations would be mired in a protracted period of economic volatility, he said.

The premier also said the world economy remained sluggish three years after the 2009 financial crisis and the uncertainty continued to hold back demand and deter investment.

“More recent developments remind us that we are not yet out of the woods,” he added. — Bernama

Source: http://www.sabahtoday.com/?p=8983

Photo source: http://www.topnews.com.sg/category/people/najib-tun-razak

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