Petros to be appointed Sarawak’s gas aggregator following passing of amended Distribution Bill

KUCHING (Nov 21): Petroleum Sarawak Bhd (Petros) would be appointed as a gas aggregator for Sarawak following the passing of the Distribution of Gas (Amendment) Bill 2023 in the State Legislative Assembly (DUN) today.

The Bill, tabled and moved by Utility and Telecommunication Minister Dato Sri Julaihi Narawi, obtained majority support from the august House with the exception of the opposition.

Sixteen members of the Assembly debated on the Bill.

Julaihi said the appointment of a gas aggregator would ensure the availability of gas for industries and consumers, and also to strengthen, improve and expand the existing gas distribution network and systems.

“The amendment empowers DUN to appoint a gas aggregator. It is envisaged that Petros, a company wholly-owned by the Sarawak government, having the requisite experience and knowledge in gas distribution, would be appointed as a gas aggregator when the Bill is passed and comes into force.

“Currently, Petros is already a licensed distributor of liquefied petroleum gas (LPG) in Sarawak, and will be appointed as the sole distributor for LPG effective Dec 1, 2023,” he said.

Julaihi said his ministry would ensure that all those undertaking activities listed under Section 7 of the Distribution of Gas Ordinance 2016 must obtain licences from the director of gas distribution.

“All persons issued with licences under Section 7 of the Ordinance for the distribution, supply and sale of gas in Sarawak shall sell and deliver their gas to Petros, to enable Petros to procure sufficient gas for distribution and supply to consumers in Sarawak, including LNG plants at a reasonable price,” he said.

Julaihi pointed out that the appointment of the gas aggregator would not, in any way, prejudice or adversely affect the existing arrangements entered into by upstream gas producers.

“They are rest assured that Sarawak government will continue to support their upstream operations, which are critical for sustainability of gas supply.

“At the same time, the Sarawak government will work with Petros and Petronas to accelerate the exploration and development of new gas fields offshore Sarawak.

“This is to increase the production of natural gas, and to apply carbon capture and storage strategies to remove high carbon dioxide contents in large volumes of gas found in offshore Sarawak,” he said, adding that this additional gas could be used to sustain industries in Sarawak including the LNG plants in Bintulu.

Julaihi said the principal functions of the gas aggregator would be to manage the procurement of natural gas from all sources for distribution and supply to any person, plant, facility and premises in Sarawak; to develop, expand, manage and maintain gas distribution network and systems including, but not limited to, pipelines, terminals for receiving gas, processing plants and storage facilities; and to carry out such other functions related to the distribution of gas in Sarawak as the DUN might direct in writing.

“The gas aggregator in the discharge of its statutory functions would comply with the directions of the director or minister so that the strategies and measures identified in the ‘Sarawak Gas Roadmap’ are fulfilled or undertaken by the gas aggregator, and that approved industries are given due and proper considerations on their requests for gas allocations,” he added.

Julaihi also said the Bill amendment would also provide for the addition to rule-making provision empowering the minister, with the approval of DUN, to make regulations for any matter deemed necessary, or expedient to give full effect to this Ordinance.

He said to enhance the enforcement provided under the Ordinance, this Bill would also introduce provisions to remand those being taken arrest under the Ordinance and seizure of properties when the offender could not be found, as well as the handling of seized items.

“This Bill would also introduce a new provision to remand those arrested if the investigation could not be completed within 24 hours. Where the offender is unknown or cannot be found, a new provision for seizure of properties and procedures in handling seized items is added and provided for in Clause 6 of the Bill.

“If there is no prosecution with regard to anything or property seized under this Ordinance, such thing or property shall be taken and deemed to be forfeited at the expiry of one calendar month from the date of seizure, unless before the date, the owner claims such thing or property,” he said.

Julaihi said with this new Bill in place, through the appointment of a gas aggregator, the distribution of gas in Sarawak could be fully developed and expanded to ensure adequate supply of gas to meet the needs of domestic consumers, industries and potential investors.

“This will accelerate sustainable economic development across Sarawak,” he added.