13 gas players receive licences under Sarawak’s Distribution of Gas Ordinance, two more being processed

KUCHING (Aug 7): A total 13 upstream gas players have received the retail of gas licences under Section 7(g) of Sarawak’s Distribution of Gas Ordinance (DGO) 2016.

Utility and Telecommunications Minister Dato Sri Julaihi Narawi revealed that there were 15 companies that applied for the licence, but 13 had been approved so far and two more applications are still being processed.

“We have appointed Petros (Petroleum Sarawak Berhad) as the sole gas aggregator, dealing in transaction, buying, selling, procurement and distribution of gas in Sarawak.

“But if there are other entities that also want to deal in selling, especially upstream companies that want to sell gas to Petros, they must be licensed,” he told reporters after the presentation of licenses to the 13 companies during the Empowering the Gas Industry: Gas Distribution License Handover Ceremony today.

He revealed that the applications by the two other companies will be approved soon because they must be licensed by Oct 1.

Petronas Carigali Sdn Bhd was one of the 13 upstream gas players which received the retail of gas licences under Section 7(g) of DGO 2016.

The other 12 companies were Petroleum Sarawak Exploration & Production Sdn Bhd, PTTEP Sarawak Oil Limited, SAPURA OMV Upstream (Sarawak) Inc, Sarawak Shell Berhad, PT Pertamina Malaysia Eksplorasi Produksi, Diamond Energy Sarawak Sdn Bhd, Mubadala Energy Ltd, ROC Oil (Sarawak) Sdn Bhd, JX Nippon Oil & Gas Exploration (Malaysia) Limited, Dialog Resources Sdn Bhd, Vestigo Petroleum Sdn Bhd, and E&P Malaysia Venture Sdn Bhd.

Julaihi in his speech earlier reminded all upstream gas players in Sarawak which have received their retail of gas licence to comply with the terms and conditions under their licenses and enter into a Gas Purchase Agreement (GPA) with Petros no later than Oct 1 this year.

“Failure in meeting the timeline will be deemed as non-compliance of the DGO 2016 and is an offence under Section 20,” he said.

On the Gas Purchase Agreement (GPA), Julaihi said this will enable the upstream gas players to legally sell and supply gas within Sarawak, ensuring consumers have access to reliable gas supply.

“My Ministry is looking forward to your continuous collaboration with Petros, as Petros is appointed as a sole aggregator based on the amended DGO 2016, which the State Legislative approved in November last year, so that we will be able to achieve our goals set out in our Sarawak Gas Roadmap.

“So it is important that this will go smoothly in the near future,” he said.

He explained that Petros, as the sole gas aggregator appointed and gazetted under the Ordinance, has been tasked with several critical functions including to manage the procurement of natural gas from all sources for distribution and supply to any person, plant, facility, and premises in Sarawak.

Its other critical functions include developing, expanding, managing, and maintaining gas distribution networks and systems, including pipelines, terminals, processing plants, and storage facilities, and carrying out other related functions as directed by the Sarawak Cabinet, he added.

“The continued growth of Sarawak’s economy requires availability of natural gas as fuel for power generation, commercial industries and industrial feedstock.

“To deliver on Sarawak Post Covid-19 Development Strategy (PCDS 2030) and ensure long-term gas supply security, it is envisaged that 30 percent of the gas should be allocated for domestic needs by 2030,” said Julaihi.

He also said with the responsibility as gas aggregator, Petros will ensure that gas allocation for export and for local value-add is determined strategically and fairly.

“Petros plays a crucial role in attracting investors, fostering greater local participation, and contributing to the economic growth of Sarawak,” he added.

He pointed out Petros’ collaboration with national oil company Petronas ensures a smooth transition of responsibilities in procuring natural gas from upstream producers and supplying it to industries in Sarawak, including the liquefied natural gas (LNG) plants in Bintulu.

Also present at the event were Deputy Minister of Utility and Telecommunications Datuk Dr Abdul Rahman Junaidi, Assistant Minister in the Premier’s Department (Corporate Affairs, Information and Sarawak Public Communications Unit) Datuk Abdullah Saidol and Petros chief executive officer Dato Janin Girie.

Ministry of Utility and Telecommunications’ (MUT) Director of Gas Distribution Kasvenda Kassim handed over the licences to the representatives of the 13 companies.