13 upstream gas sellers get retail licences to commence gas supply, sale activities in Sarawak

Julaihi (seventh right), Abdul Rahman (eighth left), Abdullah (sixth right), and other officials in a group photo with the 13 licenced upstream gas sellers' representatives following the handover ceremony at a hotel in Kuching on Aug 7, 2024.

By Ashley Sim

KUCHING, Aug 7: The Gas Distribution Division of the Ministry of Utility and Telecommunication (MUT) Sarawak has issued retail licences to 13 upstream gas sellers seeking to supply and sell natural gas in the State.

The 13 upstream gas sellers granted licences under Section 7(g) of the Distribution of Gas Ordinance, 2016 (DGO 2016) are: Petroleum Sarawak Exploration & Production (PSEP) Sdn Bhd, PTTEP Sarawak Oil Limited, SAPURAOMV Upstream (Sarawak) Inc, Sarawak Shell Berhad, PETRONAS Carigali Sdn Bhd, 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 (VPSB), and E&P Malaysia Venture (EPMV) Sdn Bhd.

“We have received requests from various entities wishing to engage in gas transactions in Sarawak.

“To date, we have issued 13 licences. Any other parties, especially upstream companies wanting to sell gas to PETROS (Petroleum Sarawak Berhad), must also be licensed,” MUT minister Datuk Sri Julaihi Narawi told reporters during a doorstop interview following the ‘Empowering the Gas Industry: Gas Distribution Licence Handover Ceremony’ today at a local hotel here.

The minister stated that licence applications from two more upstream companies were currently being processed and should be approved soon, bringing the total to 15.

He also elaborated on the role of PETROS, explaining its position as the principal aggregator, responsible for overseeing all gas-related transactions in Sarawak.

“PETROS, as the sole Gas Aggregator, will handle all aspects of buying, selling, procurement, and distribution of gas in the State.

“If other parties wish to deal in gas sales, they must be licensed as per the DGO 2016,” he said.

Earlier in his speech, Julaihi reminded all licence recipients to comply with the terms and conditions stipulated under their licences and to enter into a Gas Purchase Agreement (GPA) with PETROS by Oct 1, 2024.

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

“This GPA will enable upstream gas players to legally sell and supply gas within Sarawak, ensuring consumers have access to reliable gas supply,” the minister noted.

The event was attended by various dignitaries and officials, including MUT Deputy Minister Datuk Dr Abdul Rahman Junaidi and Deputy Minister in the Premier’s Department (Corporate Affairs and UKAS), Datuk Abdullah Saidol. — DayakDaily