By A Senior Lawyer
The perceptions that Sarawak through Sarawak Petroleum Berhad (Petros), wants to destroy or undermine Petroliam Nasional Berhad (PETRONAS) is absolutely baseless. In fact, the Sarawak government is not asking for anything from PETRONAS or even the federal government.
What Sarawak wants is that its laws are given due respect and full compliance by PETRONAS and the federal government.
Let me explain. Firstly, the Inter-Governmental Committee Report (IGCR) 1962, recommended that electricity other than hydroelectricity; gas and gas work and other works for production and distribution of power and energy should be under Federal List.
However, it is subjected to delegation of legislative authority in the case of electricity and distribution of gas to Sabah and Sarawak.
Thus, by the Bornean States. (Legislative Powers) order (FLN 17/64) made by the Yang di-Pertuan Agong under Article 95C of the Federal Constitution, with effect from Malaysia Day, the power to pass laws on electricity and the distribution of gas was delegated to the legislatures of Sabah and Sarawak respectively, for an indefinite period and without any condition or restrictions.
What was agreed at the formation of Malaysia must be fully honoured by the federal government and PETRONAS.
Secondly, when former Prime Minister Tun Dr Mahathir Mohamad was in office, it was agreed that Sarawak be exempted from Section 6 (1) and (3) of the Petroleum Development Act 1974, which required any person who wants to market and distribute gas to obtain permission from the Prime Minister.
The Notice of Exemption (Amendment) Order 2021 was signed by then Prime Minister Tan Sri Muhyiddin Yassin.
Further, the Gas Supply Act, 1993 was not made applicable to Sarawak.
All these demonstrate that Sarawak has the autonomy to regulate the Distribution of Gas in Sarawak.
All Sarawakians ask for is that this autonomy must be honoured and not eroded.
Thirdly, on the opposition leader, Datuk Seri Hamzah Zainuddin’s recent media statement that Sarawak’s “oil and gas demands” be addressed on a “spirit of unity and fairness”, the answer is that Sarawak did not make any oil and gas demands.
His statement showed a complete lack of understanding of Sarawakians’ aspirations: its autonomy over gas distribution be respected and that natural gas produced in Sarawak must be used sustainably and for the development of Sarawak and the nation.
Fourthly, PETRONAS, through PDA 1974, had stewardship of oil and gas resources in Sarawak. Since the 1970s, PETRONAS exported natural gas produced in the form of liquefied natural gas (LNG). As high as 94 per cent of the gas produced from Sarawak is exported to Japan and Korea, leaving only six percentage for the generation and industrial development in the State.
Sarawak’s persistent request for more gas allocation for its industries has not been entertained by PETRONAS.
Therefore, the Sarawak government has no alternative but to appoint Petros as the sole aggregator to ensure fair allocation of gas supplies for consumers in the State at affordable price to attract investments and support its development agenda.
Fifthly, the State has developed a Sarawak Gas Roadmap for better and more sustainable utilisation of its natural gas resources, for development of clean energy solutions, hydrogen and to generate electricity which could be transmitted by subsea cables to Peninsular Malaysia.
Sarawak wants the gas produced within its territory to facilitate national economic growth in accordance with Malaysia net zero agenda.
Finally, Sarawak’s intention has been misinterpreted by certain parties including PETRONAS. As such, I would like to call on all Malaysians to be rationale in public discourse on the PETRONAS-Petros issue.
What Sarawak wants is respect for its laws so that the State can ensure a more sustainable use of its gas resources for the growth of the national economy. National unity and solidarity will follow when what had been agreed at the formation of Malaysia to safeguard the special interests of Sarawak are respected and honoured by all parties, unreservedly.
________________________________________________________________________
This is the personal opinion of the author(s) and does not necessarily represent the views of DayakDaily. Letters to the Editor may be lightly edited for clarity.
— DayakDaily
