The State Government of Sabah confidently undertook an ambitious project in 1980, known as the SABAH GAS UTILISATION PROJECT (SGUP). The project, devised to harness the offshore associated natural gas, which was then vented offshore, and to pipe it into Labuan for commercial and industrial uses.

In 1981, two State-owned entities, namely, the SABAH ENERGY CORPORATION (SEC) and the SABAH GAS INDUSTRIES SDN. BHD (SGI) were set up for the implementation and operation of the SGUP.

1981 also saw SEC embarking on the supervision and management of few large scale projects such as Gas Grid Facilities, Jetties, Housing Projects and Clubhouse.

CORPORATISATION

On 29th January 1997, the Sabah state cabinet approved the corporatization of Sabah Energy Corporation. Subsequently, on 19th June 1997, the State Legislative Assembly approved the Sabah Energy Corporation (Successor Company) Bill. Under Gazette Notification No. 457, SEC corporatisation came into operation on 1st August 1997.

SEC’s interests, rights, and liabilities were vested in a Successor Company named SABAH ENERGY CORPORATION SDN. BHD which is wholly owned by the Chief Minister of Sabah.