Sabah Embraces Eco-Revolution with $5B Green Steel Initiative

SogipImage Source: Sogip


Sabah is diving into eco-friendly advancements with a $20 billion green steel project at the Sipitang Oil and Gas Industrial Park (Sogip). The initiative, kicking off in phases from 2024, aims to leverage natural gas, reducing carbon emissions by 70%. This sustainable venture anticipates substantial economic growth and nearly 2,800 job opportunities, reports Free Malaysia Today.



Sabah, under the leadership of Chief Minister Hajiji Noor, is steering towards an environmental transformation through the RM20 billion green steel project at the Sipitang Oil and Gas Industrial Park (Sogip). The initiative, announced during the agreement exchange ceremony at Menara Kinabalu, emphasizes a green technology revolution by harnessing renewable energy and championing sustainable solutions.

The heads of agreement exchange between Sabah Energy Corporation Sdn Bhd (SEC) and Esteel Enterprise Sabah Sdn Bhd (Esteel Sabah) marks a significant step in this eco-friendly endeavor. SEC commits to supplying 100 million standard cubic feet per day (mmscfd) of natural gas to Esteel Sabah’s steel manufacturing plant, with an additional 50 mmscfd dedicated to power generation over the next two decades.

Chief Minister Hajiji highlighted that Sabah's investment in green technology aligns with global sustainability objectives while tapping into the burgeoning market for eco-friendly solutions. The project, spanning three phases and prioritizing natural gas as a reducing agent over coke and coal, anticipates a remarkable 70% reduction in carbon emissions, ensuring an environmentally friendly and efficient production process.

Esteel Sabah, a subsidiary of Singapore’s Green Esteel Pte Ltd, secured a land-lease agreement with Sabah Oil and Gas Development Corporation Sdn Bhd in November 2022, laying the groundwork for the manufacturing plant at Sogip in Sipitang. Phase one, expected to commence this year with an estimated cost of $5 billion (RM8.97 billion), aims for completion by 2026, creating around 2,795 job opportunities during its operational phase.

Chief Minister Hajiji emphasized the project’s pivotal role in Sabah's economic growth strategy and SEC’s substantial contribution towards promoting sustainable initiatives and regional development.


Sabah's venture into the $20 billion green steel initiative at the Sipitang Oil and Gas Industrial Park embodies its commitment to eco-friendly advancements. The project, phased across several years, focusing on natural gas as a key agent, strives to significantly cut carbon emissions while fostering economic growth and creating job opportunities.

SteelGuru Business News