KOTA KINABALU: Owner of Sabah’s biggest rubber and latex processing plant, Tuaran Crumb Sdn Bhd, has sealed an agreement with Sabah Energy Corporation Sdn Bhd (SEC) to purchase natural gas for the operation of its factory.
The two government-linked companies (GLCs) yesterday signed a natural gas Sales and Purchase Agreement for the delivery of compressed natural gas from SEC’s station at Kota Kinabalu Industrial Park (KKIP) to the Crumb’s plant at Sungai Damit, Tuaran.
This completed Crumb’s conversion from diesel fuel to natural gas, will significantly reduce its energy cost.
The cleaner fuel will not only improve the plant’s efficiency but also reduce its carbon footprint as it produces lower emission of green house gases.
Deputy Chief Minister Datuk Seri Yahya Hussin and Minister of Resource Development and Information Technology Datuk Siringan Gubat witnessed the signing.
Yahya, who is also the Minister of Agriculture and Food Industries, said the partnership was in line with the government’s vision to reduce its operating cost.
The signing was also of significant importance as it marks an important milestone where two GLCs complemented each other’s efforts and achieved synergies in developing their respective sectors, namely the rubber and natural gas industries.
A wholly-owned subsidiary of Sabah Rubber Industry Board (SRIB), Tuaran Crumb produces SMR5, SMR10 and SMR20 for export at its Tuaran plant, with an annual capacity of 60,000 tons per annum.
The facility also supplies latex concentrate HA for the internal use of its specialty rubber factory in Beaufort.
SRIB chairman Datuk Haji Ahmad Bujang signed the agreement on behalf of Tuaran Crumb while SEC was represented by its chief operating officer, Dato’ Harun Ismail.
The signing made Tuaran Crumb the eighth customer benefiting from SEC’s Virtual Pipeline launched in July 2012 for delivering natural gas from the KKIP station.