By Ling Hui
KUCHING, May 13: Petroliam Nasional Berhad (PETRONAS) has acknowledged Petroleum Sarawak Berhad’s (Petros) role as the Sole Gas Aggregator in Sarawak and both parties have agreed to sign the Definitive Agreement by coming July 1.
Minister of Utility and Telecommunication Dato Sri Julaihi Narawi said this would enable Petros to conclude the Gas Purchase Agreements (GPAs) with all upstream gas producers and Gas Sales Agreements (GSAs) with all downstream gas buyers or users by July 1.
“Therefore, starting from July 1, 2024, Petros as the Sole Gas Aggregator will buy natural gas produced in Sarawak from all upstream gas producers and sell the gas to all downstream gas buyers including liquefied natural gas (LNG) processing plants in Sarawak,” he said.
For future LNG sales, he added, LNG processing plants in Sarawak will need to sign new contracts with Petros in relation to the conditions of supply and delivery out of the State.
Julaihi also said with Petros as the Sole Gas Aggregator, all parties carrying out natural gas distribution activities in Sarawak must obtain a licence from the Sarawak government in accordance with the Distribution of Gas Ordinance, 2016 and the Distribution of Gas (Amendment) Ordinance, 2023.
Previously, he said, PETRONAS purchased natural gas from all upstream gas producers through Upstream Gas Supply Agreements (UGSAs) and sold the gas through contractual agreements to users in Sarawak including LNG plants in Bintulu and Sarawak Energy Berhad.
“This activity is not in line with the Distribution of Gas Ordinance, 2016 (DGO 2016) which has been in force since 2018 because PETRONAS has never applied for any licence to buy and sell natural gas in Sarawak,” he said in his ministerial winding-up speech in the august House here today.
Thus with the appointment of Petros as the Sole Gas Aggregator, Julaihi said PETRONAS must stop any natural gas buying and selling activities in Sarawak and hand over their natural gas distribution network and system to Petros.
“At the same time, Petros will take over the role from PETRONAS not only as a buyer and seller of natural gas, but Petros will subsequently carry out all activities related to the procurement, supply and distribution of natural gas produced in Sarawak.
“This transition period will last from July 1, 2024 until Jan 1, 2025,” he said. — DayakDaily
