The federal government has once again decided to cancel the Trans-Sabah Gas Pipeline (TSGP) project.
The project, initially launched in 2016, aimed to build a 662km pipeline to transport natural gas from Kimanis on the west coast of Sabah to Sandakan and Tawau on the east coast.
In 2018, the Pakatan Harapan government cancelled the project after finding that almost 90% of the allocated RM4.06 billion had been paid, but only 13% of the work had been completed.
However, in 2021, the Perikatan Nasional government attempted to revive the project by renegotiating the agreement with the original contractor.
Economy Minister Rafizi Ramli has now confirmed that the project will not proceed.
He stated that since Sabah was given control over its gas supply in January 2023, the allocated resources have been diverted to other sectors.
He also assured that Putrajaya remains committed to supporting Sabah’s energy development through national economic policies.
