Sabah rubber board opts for gas

By KRISTY INUS | kristy@nst.com.my

CHEAPER ALTERNATIVE TO DIESEL: Move can save up to 40pc of processing cost, reduce carbon footing

SABAH’S rubber industry will start using natural gas as a cheaper alternative to diesel in rubber processing, potentially saving up to 40 per cent in its cost, apart from reducing carbon footprint.

Towards this end, the Sabah Rubber Industry Board (SRIB), via subsidiary Tuaran Crumb Sdn Bhd, yesterday signed a sales and purchase agreement with Sabah Energy Corporation Sdn Bhd (SEC), an organisation tasked to develop energy resources in the state and Labuan.

The agreement will see SEC supplying natural gas to Tuaran Crumb’s Standard Malaysian Rubber (SMR) factory at Kampung Sungai Damit, Tuaran — the largest crude rubber processing in the state with a capacity of producing 60,000 tonnes of tyre-grade SMR grade rubber annually.

Sabah’s Deputy Chief Minister Datuk Yahya Hussin, who is also the state’s Agriculture and Food Industry Minister, witnessed the signing between SRIB chairman Datuk Ahmad Bujang and SEC chief executive officer Datuk Harun Ismail.

Ahmad Bujang said the board expects to start receiving the natural gas once the Virtual Pipeline System (VPS) is completed from SEC station in Kota Kinabalu Industrial Park to the factory some time this year.

“The natural gas will replace the diesel used for the rubber drying (phase) in the rubber processing.

“We have spent RM3.2 million on this when using diesel but we could reduce it to RM2 million if we start using natural gas, saving RM1.2 million per year. We will of course save more than this if we increase our production rate in future.

“Besides energy savings, the conversion will also help the company reduce its carbon footprint with decreased emission of green house gases,” Ahmad Bujang said after the signing.

[PIC] Sabah Deputy Chief Minister Datuk Yahya Hussin (second from right) witnessing the exchange of documents between SRIB chairman Datuk Ahmad Bujang (right) and Sabah Energy Corporation chief executive Datuk Harun Ismail in Kota Kinabalu yesterday. With them is Resource Development and Information Technology Minister Datuk Siringan Gubat. Pic by Malai Rosmah Tuah

Read more: Sabah rubber board opts for gas – Nation – New Straits Times http://www.nst.com.my/business/nation/sabah-rubber-board-opts-for-gas-1.562311#ixzz30Eb2E4Xb

Information in this page was last updated on 16 May, 2014.
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