By Shikin Louis
KUCHING, Nov 18: Sarawak Minister of Utility and Telecommunications (MUT) Dato Sri Julaihi Narawi has defended Stakan assemblyman Datuk Hamzah Brahim’s call for Petroliam Nasional Berhad (PETRONAS) to respect Sarawak’s laws and formally recognise Petroleum Sarawak Berhad (Petros) as the sole gas aggregator in Sarawak.
He said Hamzah’s comments echo the frustrations of Sarawakians over PETRONAS’ management of natural gas resources in Sarawak.
“These frustrations stem from its (PETRONAS) failure to provide sufficient gas to support Sarawak’s industrial growth and attract potential investors.
“Let me make this clear: calling for PETRONAS to respect Sarawak’s laws is neither a threat nor an act of blackmail—it is a legitimate demand grounded in legal rights,” he said when presenting his ministerial winding-up speech in the Sarawak Legislative Assembly (DUS) sitting here today.
This came following former law minister Datuk Zaid Ibrahim who described Hamzah’s remarks as “startling and provocative” and called for cool heads to resolve the oil and gas issues involving PETRONAS.
To this, Julaihi mentioned that the Sarawak government has always called for collaboration between PETROS and PETRONAS but recent conduct and action by PETRONAS do not demonstrate that it intends to have an amicable solution.
He added that PETRONAS does not seem to respect and abide by Sarawak’s laws such as the Distribution of Gas Ordinance 2016 or to cooperate with PETROS to enable PETROS to carry out its statutory functions in the interests of Sarawakians.
“Those with cool heads will realise that since the coming into force of the Petroleum Development Act (PDA) 1974, the cumulative value of petroleum produced and obtained in Sarawak, by PETRONAS and the Federal government up to 2014 is RM1 trillion, with only five per cent or RM 50 billion thereof returned to Sarawak in the form of cash payment pursuant to section 4 of the PDA.
“With such an enormous contribution to the national coffers, Sarawak deserves better attention, treatment and support from PETRONAS.
“The least PETRONAS should do is to comply with our laws when operating in Sarawak and allocate and make available more gas to support the industrial development of Sarawak and its transition towards a green economy,” he elaborated.
Earlier, Julaihi stated that Sarawak produces over 60 per cent of Malaysia’s natural gas, but 94 per cent of it is exported as LNG to Japan and Korea, while all gas from offshore Peninsular Malaysia is retained for local use at subsidised rates.
Only six per cent of Sarawak’s gas is allocated for local industries, which hampers industrial growth and deters foreign investors.
To address this imbalance and to ensure an adequate supply of gas for local industries and Sarawak’s energy transition programme, Julaihi said the Sarawak government has developed a Sarawak Gas Road Map and appointed PETROS as the gas aggregator to procure, allocate and distribute gas to ensure that there would be an adequate supply of gas for use by industries in Sarawak.
“At the request of the Sarawak government, PETRONAS has signed a memorandum of understanding with PETROS to use its best endeavour to allocate 1.2 billion standard cubic feet per day (bscf/d) by 2030 to support the Sarawak Gas Road Map.
“However, until today, PETRONAS has yet to identify where the allocated volume of gas would be sourced and when the gas fields would be developed,” he emphasised.
Julaihi further said since the 1980s, PETRONAS has focused on export-oriented LNG infrastructure, neglecting local gas distribution, prompting PETROS to build a pipeline from Bintulu to Samalaju for power generation and heavy industries. — DayakDaily
