SMJ Successfully Acquires Equity Interest in PETRONAS Chemicals Fertiliser Sabah Sdn Bhd

Kuala Lumpur: The State of Sabah, through its fully owned company SMJ Sdn Bhd (SMJSB), has signed a Share Purchase Agreement (SPA) with PETRONAS Chemicals Group Berhad (PCG) for the acquisition of 25% equity interest in PETRONAS Chemicals Fertiliser Sabah Sdn Bhd (PC FSSB) for a total value of RM1.2 billion. This deal marks a significant step towards strengthening Sabah's position in the chemical fertiliser industry.

The partnership between PCG and the State of Sabah is set to strengthen through a new opportunity, paving the way for potential collaborations in the future. The collaboration aims to boost development within the Sipitang Oil and Gas Industrial Park (SOGIP), bringing economic benefits to the surrounding communities in Sabah. This move is seen as a strategic step towards unlocking greater potential in the region's industries.

PC FSSB's objective since 2011 has been to build, possess, and manage a unified Ammonia and urea manufacturing facility in the SOGIP area of Sipitang, Sabah. The world-scale facilities have the capacity to produce 1.9 million metric tonnes per annum of Ammonia and urea, making it the biggest single train Ammonia and urea plant in Southeast Asia and the third biggest urea plant in the Asia Pacific region. Occupying 211 acres of land in SOGIP, the plant enjoys proximity to key growth markets in the Asia Pacific.

PC FSSB has played a vital role in the development of Sabah's oil and gas industry, through the establishment of SOGIP. As the first fertilizer plant built in Sabah, PC FSSB produces urea, which is used directly as a fertilizer or feedstock for resins in plywood, adhesives, and other chemicals. Additionally, Ammonia produced by the facility is mainly used as feedstock for urea, or for industrial use in applications such as alkaline cleansers and refrigerant gas. This highlights the significant contribution of PC FSSB in the Sabah region's growth and progress.