Gas distribution agreement on the cards

KUCHING: The Sarawak government, Petroliam Nasional Berhad (Petronas), and Petroleum Sarawak Berhad (Petros) have confirmed that discussions on gas distribution in the state are progressing well, with an agreement expected soon.

The update was shared following a joint meeting between the three entities at the Premier’s Office here Tuesday (Sept 24).

In a joint statement, the parties reaffirmed their commitment to resolving the issue amicably, with no legal action being considered by Petronas against the Sarawak government or Petros.

Additionally, the statement emphasised that all parties are adhering to both federal and state laws as discussions continue to shape the future of Sarawak’s gas distribution framework.

On Sept 10, Petronas in a statement reiterated its commitment to forging a mutually beneficial partnership for the distribution of natural gas in Sarawak.

This clarification came in response to a report by Channel News Asia (CNA) on Sept 7, which, citing government sources, suggested that Petronas might be considering a court injunction to safeguard its position as the sole authority over Malaysia’s hydrocarbon resources.

This speculation arose amid Petros’ ongoing efforts to assert itself as the sole gas aggregator in Sarawak, challenging Petronas’ dominance, which dates back to 1974.

Abang Johari then also dismissed any notion of a conflict between the Sarawak government and Petronas, clarifying that there is no legal dispute.

He asserted that Petros is collaborating closely with Petronas, and that discussions between the two parties remain active.

During Petronas’ financial results announcement on Sept 5, Petronas President and Group Chief Executive Officer Tan Sri Tengku Muhammad Taufik acknowledged that while the negotiations have been complex, there has been no confrontation between Petronas and Petros.

“I am aware of certain reports spreading misinformation or misinterpretation about a confrontation between us and Petros. Yes, the discussions have been challenging, but they have been conducted in a constructive, professional, and engaging manner. Channels of communication remain open,” Taufik was quoted as saying.

He reaffirmed Petronas’ commitment to maintaining its partnership with Sarawak but also stressed that while state laws are acknowledged, federal regulations govern operations to ensure the continuous, safe, reliable, and secure supply of gas.