Gas distribution: Extension to give Petronas time to discuss with LNG buyers, says Premier

KUCHING (Aug 4): The three-month extension to Petronas in regard to gas distribution in Sarawak is just to provide the national oil and gas company the opportunity to discuss on the matter with their present liquefied natural gas (LNG) purchasers, said the Premier.

When met by reporters seeking for clarification on Petronas’ request for a postponement to finalise arrangements with Petroleum Sarawak Berhad (Petros) on the distribution of gas in the state, Datuk Patinggi Tan Sri Abang Johari Tun Openg said the matter “is actually quite straightforward”.

“There’s nothing to negotiate. It’s just a matter of law. We have an existing arrangement with the present buyers, especially LNG. So for us to implement it, they (Petronas) are asking for a three-month period for them to talk to their buyer.

“There’s no problem actually,” he said when met after officiating the ‘First Governor of Sarawak: Tun Openg’ biography at Hikmah Exchange Event Centre here today.

On July 28, Abang Johari said he had given Petronas three months to sort out the issue, which must be finalised by October.

“Otherwise, we will proceed with the monitoring of the gas distribution in Sarawak in which Petros, as the gas aggregator of the state, has been given the empowerment to do so,” he told a press conference then.

He also said that discussions are currently ongoing between Petronas and Petros.

“They are concerned on the distribution of gas to LNG that might be affected. We understand their concerns and respect that arrangement because Sarawak also has equity in the LNG,” he said.

On July 26, Petronas said it was currently engaged in discussions with both the state and federal governments, as well as Petros to reach a mutual resolution regarding the gas distribution in Sarawak.

The group told the Business Times that it emphasised the importance of all parties understanding and acknowledged each other’s constraints to achieve a satisfactory outcome.

It also said that it would continue to be a strategic partner to Sarawak to preserve a thriving and conducive investment climate in Malaysia.