By DayakDaily Team
KUCHING, Nov 11: Petroleum Sarawak Bhd (PETROS) has been appointed as the gas aggregator for Sarawak’s domestic market effective March 1, 2025, a role that will be respected and supported by all industry players involved in the distribution and supply of gas to local consumers, said Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said.
According to TVS, Azalina made the remark in response to a question from Datuk Awang Hashim (PN-Pendang) on the latest status of oil and gas rights negotiations between Petronas and Sarawak.
She said that Petroliam Nasional Berhad (PETRONAS) is currently negotiating with PETROS to detail the Joint Declaration signed on May 21, 2025.
“This negotiation process is time-consuming because it needs to take into account commercial principles, mutual interests and industrial sustainability, and aims to create a more strategic, inclusive and equitable cooperation framework for the long term,” she said.
She emphasised that Petronas must be allowed to continue performing its roles and responsibilities under the Petroleum Development Act 1974 (Act 144), covering activities from upstream operations to LNG sales in the international market.
“PETRONAS is still working to resolve this matter through a negotiated and collaborative approach, by ensuring that the interests of all stakeholders are always protected, while maintaining the stability and sustainability of the country’s oil and gas industry as a whole,” she said.
In a separate reply to Chong Chieng Jen (PH-Stampin), Azalina clarified that Petronas does not sell natural gas directly to Sarawak. Instead, it is channelled to the State’s downstream industries through Gas Sales Agreements (GSAs) based on commercial terms and conditions.
She also noted that domestic demand for natural gas in Sarawak, particularly for the non-liquefied natural gas (non-LNG) market, is projected to rise to 500 million standard cubic feet per day by the end of this year.
“The average natural gas demand in Sarawak for the non-LNG market is around 400 million cubic feet per day (mmscfd) for the period 2023 to 2024,” she said in a written reply on the Parliament website today.
Azalina added that Petronas remains committed to ensuring an allocation of 1.2 billion standard cubic feet per day to meet the needs of Sarawak’s domestic market by 2030.
She said any existing and future agreements or contracts involving Petronas or its subsidiaries with third parties for LNG sales covering the upstream sector to LNG exports will remain fully preserved, unaffected and will continue to be in force. — DayakDaily
