The Sarawak Premier, Datuk Patinggi Tan Sri Abang Johari Tun Openg, stressed the importance of Petroleum Sarawak Berhad (Petros) as the gas aggregator in Sarawak and outlined the state government's commitment to ensuring sustainable gas utilization for the benefit of both Sarawak and Malaysia.
The operations of Petronas and its subsidiaries in Sarawak must not negatively impact the role of Petroleum Sarawak Berhad ( Petros ) as a gas aggregator or contradict the Distribution of Gas Ordinance ( DGO ) 2016, according to Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg. He stated that Petronas ' existing contracts will remain unaffected to allow the company to uphold its domestic and international contractual obligations.
Abang Johari emphasized that Petros is designated as the gas aggregator in Sarawak under Section 7A of the DGO 2016, and the company will carry out its duties as outlined in the ordinance and under the guidance of the Minister of Utility and Telecommunication Sarawak. He reaffirmed the GPS government's commitment to protect the rights and safeguards guaranteed to Sarawak under the Federal and State Constitutions and the Malaysia Agreement.He also highlighted the Sarawak government's dedication to ensuring that the federal government's legislative powers regarding mineral development, mining, oil, and oilfields (under item 8(j) of List I of the Federal List) are exercised in compliance with the state's powers over prospecting licenses, mining leases, and certificates (Item 2© List II of the State List). The state government will also safeguard the legislative powers over electricity and gas distribution vested in the State Legislative Assembly by the Borneo States (Legislative Powers) Orders 1963, as recommended by the Inter-Governmental Committee (IGC) in 1962. He further emphasized that the Sarawak government will ensure all oil and gas companies operating in Sarawak adhere to state laws, including the Land Code, State Sales Tax Ordinance, 1998, and the Oil Mining Ordinance, 1958.The Premier stated that the Sarawak government recognizes the aspirations of Sarawakians for a better gas utilization and allocation system to support the Sarawak Gas Roadmap, while also acknowledging the need to balance these aspirations with the stability and growth of the oil and gas industry in Sarawak, particularly during global economic challenges and the transition to renewable energy.At the national level, Abang Johari stated that he has reached several understandings with the Prime Minister. Both parties agree to respect federal and state laws, including the Petroleum Development Act 1974 (PDA 1974) and the DGO 2016. Petronas and Petros will collaborate as partners to advance national and state interests, prioritize Sarawak's interests, and ensure revenue growth. To ensure Petronas can fulfill its commitment of providing guaranteed gas access up to 1.2 billion standard cubic feet per day for domestic use in Sarawak for the implementation of the Sarawak Gas Roadmap, the state government will request offshore areas in western Sarawak and elsewhere in the Continental Shelf from the federal government to explore for gas. This exploration aims to produce the guaranteed volume or additional amounts to advance the Sarawak Gas Roadmap.Abang Johari also mentioned that the Sarawak government will ensure that the guaranteed volume of gas is delivered at a fair price, one that promotes investment and industries in Sarawak. Furthermore, the state government, in the national interest, is committed to ensuring that the guaranteed volume of gas, along with any additional gas produced from offshore areas in western Sarawak and elsewhere in the Continental Shelf, is utilized sustainably. This utilization will support the growth of industries in Sarawak, meet the energy demand in Peninsular Malaysia, and contribute to the production of clean energy, in line with the federal government's declared intention to make Sarawak the clean energy hub for Malaysia
Sarawak Petronas Petros Gas Distribution DGO Abang Johari Malaysia Agreement Renewable Energy
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