Petros signs gas sales agreement with Sarawak Petchem, Sarawak Energy

KUCHING (July 22): Petroleum Sarawak Bhd (Petros) recently signed a Gas Sales Agreement (GSA) with both Sarawak Petchem Sdn Bhd (Sarawak Petchem) and Sarawak Energy Bhd (Sarawak Energy) respectively to commence its role as Sarawak’s sole gas aggregator to buy and sell all natural gas in the state.

This milestone marks the first two GSA signings for Petros as the gas aggregator, signifying the implementation of the amendment to the state’s Distribution of Gas Ordinance, 2016 (DGO, 2016), wherein Petros has been appointed as the sole gas aggregator, the state-owned oil and gas company said a press release today.

“These two GSAs will enable Sarawak Petchem to have access to gas for its methanol plant and Sarawak Energy for its gas-fired power generation,” it added.

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

“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 per cent of the gas should be allocated for domestic needs by 2030,” it added.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg witnessed the exchange of documents for both GSAs at the launch of the Sarawak Methanol Complex in Bintulu today.

“All such agreements are expected to be signed before year-end to bring all downstream and upstream gas players in compliance with the DGO,” Petros said.

Petros Group chief executive officer Dato Janin Girie said the signing of both GSAs with Sarawak Petchem and Sarawak Energy is a historical milestone in the implementation of the DGO to ensure sufficient natural gas is available to the people and for the industrial development of Sarawak.

“We appreciate the trust placed upon us by the Sarawak Government and the Ministry of Utility and Telecommunication Sarawak to secure domestic natural gas resources for the short, medium and long-term needs,” he added.

He also emphasised that the gas aggregator is entrusted to invest in the development, expansion, management and maintenance of critical gas and energy infrastructure statewide.

Presently, Petros is progressing the development of four Gas Hubs in Kuching, Miri, Samalaju and Bintulu under the Sarawak Gas Roadmap (SGR).

These hubs, serving as central points for gas distribution through the “Hub-and-Spoke” delivery model, will enhance access to affordable gas and create industrial investment opportunities.

This includes the new gas trunkline Petros is executing to deliver gas from Kidurong to the Samalaju Industrial Park.

To support Sarawak’s aspiration to become a high-income developed State by 2030, Janin said Petros continues its efforts to deliver real impacts through its strategic role as the gas aggregator.

“Our ongoing implementation of SGR and the development of Carbon Capture, Utilisation and Storage (CCUS) infrastructure will be the engine of growth, uplifting and transforming Sarawak into an economic powerhouse for the nation and the region.

“These new infrastructure and value-adding gas-based projects are expected to collectively create over 100,000 high-quality jobs across the State for anak-anak Sarawak,” he added.

Janin also said Petros is looking forward to signing all other Gas Sales and Purchase Agreements with upstream gas sellers and downstream gas buyers in the coming months.

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

The appointment follows the passing of the tabulated Bill for the Amendment to the DGO, 2016 at the Sarawak State Legislative Assembly (DUN) in November last year .