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Sang had on Wednesday submitted a letter to the KPC board saying that he would not be seeking a new term next year, which ends in April.
The Kenya Pipeline Company has had its fair share of multibillion shilling scandals this year.
In October, DCI boss George Kinoti had summoned Sang, Board Director John Ngumi and five other officials to record statements over the Sh1.8 billion Kisumu oil jetty scandal.
The State Corporation has recently also been questioned on the Sh48 billion, 450-kilometre Mombasa-Nairobi line 5 pipeline enhancement project, whose tender was awarded to Lebanese firm Zakheem Limited.
Again in May, detectives from Ethics and Anti-Corruption Commission raided the homes and offices of staff of Kenya Pipeline Corporation in a probe into fraud allegations.
The officials went to the Nairobi homes of former Managing Director Charles Tanui, General Manager- Finance Samuel Odoyo and Amina Juma of procurement, searching for documents over the alleged fraud in the Sh647 million supply of hydrant pit valves.
EACC CEO Halakhe Waqo said the commission was investigating allegations of corruption in the award of the supply of the Hydrant pit valves complete with isolation valves and two year operational spares at Sh647 million.