Distribution of Gas Ordinance: Talks with Petros still ongoing, Petronas clarifies

KUCHING (Oct 31): Petronas today clarified that it is still in discussions with Petroleum Sarawak Bhd (Petros) on the proposed implementation of the Distribution of Gas Ordinance (DGO).

In a statement, the national oil and gas company said the ongoing discussions aim to align the interests and objectives of all parties while preserving the sanctity of existing contractual arrangements.

It added that the discussions also aim to ensure commitments to investors and customers continue to be fulfilled.

This statement came after Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg earlier revealed that Petronas had recognised the designation of Petros as the sole aggregator for natural gas in the state.

He said Petronas had informed the state government informally on the matter.

“Petronas has informed us and, officially, the matter could be finalised today. Meaning we will proceed with our role as the aggregator and the detailed formula will be discussed further,” Abang Johari said.

On Feb 1 this year, Petros was appointed as the sole gas aggregator for Sarawak to procure all natural gas produced in the state by upstream gas producers for the distribution, supply, and sale to all downstream gas buyers.

The appointment followed the passing of the tabulated Bill for the Amendment to the Distribution of Gas Ordinance 2016 at the State Legislative Assembly in November last year.