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Tuesday, May 6, 2008

Sabah 'Robbed' of its Natural Gas & Urged to Use Coal Instead

The Federal Government has urged Sabah to use coal to resolve its power supply crisis whilst it siphons off natural gas from Sabah to Sarawak. What kind of senseless governance is the Federal Government using? Simply put, the Federal Government through Petronas is 'robbing' Sabah in broad daylight of its natural gas, and then try to pollute Sabah (and thus risk poisoning Sabahans with poisonous coal emissions) by urging Sabah to use coal-fired power plants. This is an insult and total outrage to all Sabahans. What are they trying to do? Pollute us so and destroy this beautiful Land-Below-the-Wind and poison us in the process? Sabahans, let us stand up for our rights (and our lives) and put a stop to all this bullying treatment!

Earlier in February, it was reported:

"Tenaga Nasional Bhd (TNB) has awarded a RM1.01 billion contract to China National Electric Equipment Corporation (CNEEC) to build a 300MW coal-fired power plant in Silam, Lahad Datu, Sabah." (Feb 20 2008, Bernama)

In 2nd April 2008, the Sabah Government rightly cancelled the project following fierce criticisms from many quarters including experts. Then when on April 21 and 30 SESB transmission towers collapsed, due to greed of scrap metal thieves (only illegal aliens have the stomach to do this), Sabah was thrown into power crisis.

Then in trying to resolve the crisis, Mr. Leo Moggie came into town on 2nd May 2008, gave a press conference, and tried to push the coal-fired plants down Sabahans throat again. He arrogantly announced again that there is no available alternative that is better and more viable than coal to boost the power reserve margin in Sabah. Such coal-fired plants now use clean coal technology, he pointed out. Then he went into a dialogue all by himself to convince Sabahans that coal burning is clean these days, and went on into a tirade, again by himself, questioning Sabahans' rejection of coal-fired plants:

..."What is so bad, so dirty about coal? Yes, coal is black, giving an impression it is not clean and if you talk about coal plants 20 years ago the worries would be more than today. But in the last few years clean coal technology had been developed and is increasingly sophisticated." (Daily Express, 03 May 2008)

Yeah rite, Mr. Moggie, if coal is clean, try rubbing it on your face. But seriously do you really believe what you are saying? No matter how clean the technology, and whilst the process may not seem all black and dirty, but it has to involve heating or burning, right? So with the heating/burning, where do the gas emissions go? Will the emissions not go right back into the atmosphere? And how many tons and tons of coal do you need to burn to supply the East Coast of Sabah with 200mw that it needs?

The State Government again rightly responded by saying it is sticking to its decision against building the coal plants in Lahad Datu:

"KOTA KINABALU: The state government is sticking to its decision against building a coal-fired power plant in Lahad Datu, said Tourism, Culture and Environment Minister Datuk Masidi Manjum.

Masidi said the government could not afford the environmental risks of such a facility close to key pristine conservation areas.

“We are aware of the argument that coal-fired plants in the peninsula are sited close to a resort and Singapore. But these places do not have the Danum Valley, the Maliau Basin or the Darvel Bay,” he said here yesterday.

The minister said the Sabah cabinet had heard views and advices from various experts before deciding against the 300MW coal-fired plant on April 2.

He found it surprising that Sabah Electricity Sdn Bhd (SESB) was insisting coal was the only viable option for power generation in the state’s East Coast.

“We have no intention to quarrel with SESB but we hope they appreciate that our obligation is to preserve the delicate nature of our environment,” he added.

On Saturday, Sabah Environmental Protection Association president Wong Tack said Tenaga Nasional Berhad chairman Tan Sri Leo Moggie had insulted Chief Minister Datuk Seri Musa Aman, Masidi and Sabahans for saying that there was no alternative for the state but to accept the coal-fired power plant in overcoming the shortage of electricity supply.

On Saturday, Sabah Environmental Protection Association president Wong Tack said Tenaga Nasional Berhad chairman Tan Sri Leo Moggie had insulted Chief Minister Datuk Seri Musa Aman, Masidi and Sabahans for saying that there was no alternative for the state but to accept the coal-fired power plant in overcoming the shortage of electricity supply. " (Borneo Post Online, 05/05/08)


What is scary about such coal-fired plants is that they can put the health and lives of many Sabahans at risk . To quote published reports:

"EAC’s Lahad Datu chairman Wong Tack said the project was an unnecessary risk. He said there had been worldwide opposition to coal plants due to concerns over emissions such as sulphur dioxide causing acid rain, soot particles causing visibility and respiratory problems and carbon dioxide contributing to global warming."

Isn't that trying poison Sabahans living in the vicinity not to mention destroying our pristine Danum Valley and Maliau Basin? And where are they going to find coal? Are they going to dissect, destroy and burn our beautiful land to mine for coal?

A thought just struck me. Why is the Federal Government so desperate to convince Sabahans to use coal plants. Sabah has enough natural gas to supply the power for its own use. Why the desperation in trying to convince Sabahans to use coal plants and pull the wool over our eyes? Is the Federal Government trying to distract Sabahans whilst Petronas siphons gas from Sabah to Sarawak?

Yes, indeed, whilst the Federal Government through TNB distracts us with stupid issues, Petronas is preparing to 'rob' Sabah of her oil and gas in broad daylight! They have to rationalise this senseless act by the Federal Government & Petronas to pipe natural gas from Sabah to Sarawak in the midst of a power supply crisis in Sabah. This Petronas 'robbery' project was launched by who else, the Prime Minister himself. The Daily Express reported:

18 January, 2008

"Kota Kinabalu: The Sabah Oil and Gas Terminal (SOGT) project at Kimanis, launched by Prime Minister Datuk Seri Abdullah Ahmad Badawi in February last year, is expected to transform significantly the State's socio-economic fabric, particularly in the Kimanis area.

The project, covering an area of 101.17 hectares, undertaken by Petronas would not only be a symbol of Sabah's brisk economic development but also create employment opportunities in oil-related industries for the local populace and in the process raise their standard of living.

The basic infrastructure such was water supply, electricity and transport facilities to be developed for the project would indirectly benefit the locals.

SOGT is among components of the Sabah-Sarawak Oil and Gas Integrated project undertaken by Petronas. Other components of the project include the development of oilfields offshore Sabah and the construction of the Sabah-Sarawak Gas Pipe project (SSGP).

The SSGP project would involve the construction of gas pipes overland spanning 500 kilometres (90km in Sabah and 410km in Sarawak) linking Kimanis in Sabah and the LNG Petronas Complex in Bintulu.

Although the total cost of the project to be completed by 2010 has yet to be revealed, news reports have estimated it to be around RM3 billion....

.... The natural gas piped to Bintulu would be processed into Liquefied Natural Gas for export."


And typical of the mainstream media, large part of the report went on and on about how great this project will be for Sabah and how the project will open up new developments along the 550km span from Kimanis to Bintulu and stimulate further economic activities for the locals blah..blah..blah.

What struck me and why I call this a daylight 'robbery' is because (and I quote) "The natural gas piped to Bintulu would be processed into Liquefied Natural Gas for export."

Why siphon the gas to Bintulu? Why not just build a LNG Complex in Sabah and export LNG from Sabah? I am sure we have more than ample space in Sabah for a LNG Complex. We already have the oil terminal depot in Sepanggar, and building an LNG complex in Sepanggar, which would be peanuts for Petronas, will no doubt boost the Kota Kinabalu Industrial Park (KKIP) after all the KKIP is a landmark of Sepanggar, and it will also create economic spillover throughout the State. Why pipe our gas all the way to Bintulu? As it is, Petronas is already bleeding Sabah dry of its oil and gas resources, and Sabah is only given 5% percent royalty each year? Isn't that 'robbery' in broad daylight? A LNG complex, say in Sepanggar, will only be a tiny, tiny drop in the hugely lucrative bucket for Petronas.

And why is Leo Moggie saying that "there was no alternative for the state but to accept the coal-fired power plant in overcoming the shortage of electricity supply. " ? With all the so-called educated people staffing TNB and SESB, is this the best alternative that they could find? Any 6-year old can figure out that burning coal gives out so much smoke and make people cough which may not be good for their health. Go figure that one out, Mr Moggie and all you educated people in TNB/SESB!

And Mr. Moggie, sir, Petronas is piping our natural gas from Kimanis into your home state Sarawak, and you come in here and announced arrogantly that we Sabahans have no alternative but to accept the coal-fired plant!!! What kind of bullshit is this? You think Sabahans are so stupid that you can just bullshit us? The way I see it, you people (Fed Govt, Petronas & TNB) are not only 'robbing' from Sabahans but you are also trying to pollute the air that we breathe and that could probably end up poisoning us all!

Sabahans are relieved that the State Government has cancelled the coal plant in Lahad Datu. Thank you, State Cabinet. It is time Sabahans object to the unethical tactics and bullying done by the Federal Government in Sabah. Why should we use coal-fired plants when we have natural gas? We have so much natural gas that could easily resolve the power supply crisis that we are facing now. We probably have so much natural gas in Sabah that if we were to blow it all up, the whole island of Borneo and, hopefully Peninsular Malaysia, will disappear from the face of the earth!

I think I speak for many Sabahans when I say that I just don't understand why Petronas will be siphoning off our natural gas from Kimanis to Bintulu in Sarawak while we are, at this very moment, suffering from a power supply crisis in Sabah. Can the Sabah Government not put a stop to this horrible treatment of Sabah by the Federal Government, Petronas and TNB?


Could we not demand for an increase in oil royalty to 30% or even 50%? After all, Sabah with all her oil and gas resources FORMED this country called Malaysia together with Sarawak and Malaya, making Sabah and Sarawak an equal partner to Malaya in the formation of Malaysia. Hence, Sabah should be entitled to a 50-50 arrangement in anything that directly concerns and come from Sabah. We are not like Trengganu which was part of Malaya. We were a sovereign nation-state that
, with Sarawak and Malaya, formed Malaysia, hence, equal partners by right where federal-state matters are concerned. The oil and gas comes from bumi Sabah, and we should share it 50-50 (or something very close to that) with the Federal Government. Likewise, anything directly concerning Sarawak and her resources should be treated likewise.

Can't the Sabah Government do anything at all about this worrying situation, especially the act by Petronas to siphon off gas from Sabah to Sarawak? Is Petronas so powerful that it can do anything it wants that even the Prime Minister has no say? Or, he has a say but will/can not do anything about it? How did Petronas get so powerful? And the only answer I can come up with is that Petronas is so powerful because it controls so much money from the oil and gas that were extracted from oil rich states including Sabah. Yes, Sabah used to be one of the richest states in Malaysia. Today, Sabah is the SECOND POOREST state in Malaysia. What happened? How come with all its oil and gas resources, Sabah is the second poorest state in the country? I just have trouble trying to understand this.

Again, I ask, can't the Sabah Government do anything about this at all, review the agreement on our oil and gas resources, for instance? Are the agreement covering Sabah's oil and gas written in stone that there is nothing we Sabahans can do? Can someone out there enlighten us, or at least me. Or should we, Sabahans, just resign ourselves to this fate of being forever sidelined, bullied and bled dry of our rich resources by the Federal Government for generations to come? With the deep frustrations that we, Sabahans, feel about Sabah's rights at the moment, I fear to think about how our children will feel in the future.

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