08/08/2011 (Bernama) - Deputy Transport Minister Datuk Abdul Rahim Bakri has described Petronas' involvement to build a power station in Kimanis and help realise another plant in Lahad Datu as a "much-awaited action".

He said the power stations should be able to overcome the state's energy crisis that was caused by shortage of supply to meet rising demand due to robust economic development.

"With the oil and gas upstream and downstream industry development corridor in Kimanis and the development of Palm Oil Industry Cluster in Lahad Datu and Sandakan, I'm sure the need for energy will increase.

"Without Petronas' initiative, surely these industries will not be able to grow. Of course Petronas has contributed a lot to Sabah development and we very much appreciate these contributions," he told Bernama here today.

Abdul Rahim said these heavy industries were expected to drive Sabah's economic growth and create more job opportunities for technocrats and local graduates.

Besides, he said, it would be able to create economic spin-offs that benefit small and medium enterprises and generate the economy as a whole.

"We hope with plenty of gas resources and the development of renewable energy, we will be able to achieve energy self-sufficiency at affordable prices one day," he said.

Petronas will operate a 300MW gas power plant in Kimanis in partnership with the Sabah Foundation and plans to set up a liquefied natural gas re-gasification terminal in Lahad Datu to feed natural gas to the proposed power plant in the area.

The Sabah Oil and Gas Terminal and the power plant are expected to cost RM2.2 billion and scheduled for completion in 2015.