Premier: Sarawak sets October deadline for Petronas’ gas distribution decision

KUCHING (July 28): Petroliam Nasional Berhad (Petronas) has until October to revert to the Sarawak government on its decision regarding gas distribution in Sarawak, said Datuk Patinggi Tan Sri Abang Johari Tun Openg.

The Premier said Petronas has requested for a postponement in regard to the distribution of gas from July 1.

“We are giving them three months to sort out this issue and it must be finalised by October.

“Otherwise, we will proceed with the monitoring of the gas distribution in Sarawak in which Petroleum Sarawak Berhad (Petros), as the gas aggregator of the state, has been given the empowerment to do so,” he told a press conference after officiating the Ibu Pertiwi flag raising ceremony at Dataran Ibu Pertiwi here today.

He was asked to comment on a recent report that Petronas is currently in discussions with the Sarawak government to reach a mutual resolution regarding the gas distribution in the state.

Abang Johari said discussions are currently ongoing between Petronas and Petros.

“They are concerned on the distribution of gas to LNG (liquefied natural gas) that might be affected.

“We understand their concerns and respect that arrangement because Sarawak also has equity in the LNG,” he said.

As such, he reiterated that the state is giving three months to finalise their decision.

“In fact, discussions between Petros and other oil and gas companies have already been finalised including PTTEP and Mubadala Energy which have signed.

“We also have Shell and now ExxonMobil is also interested to come to Sarawak,” 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 will continue to be a strategic partner to Sarawak to preserve a thriving and conducive investment climate in Malaysia.