PETRONAS given 3 months to resolve gas distribution issue, says Premier

Abang Johari inspects the guard-of-honour during the Ibu Pertiwi Flag Waving Ceremony held at Ibu Pertiwi Square, Kuching on July 28, 2024. Photo credit: Sarawak Public Communication Unit (UKAS)
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By Shikin Louis & Chris Bishop

KUCHING, July 28: The Sarawak government has given Petroliam Nasional Berhad (PETRONAS) three months to resolve the gas distribution issue gas in light of Sarawak-owned company Petroleum Sarawak Berhad’s (Petros) appointment as the sole aggregator on gas sales.

Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg said Petros was supposed to take over PETRONAS’ role in the buying and selling of natural gas as well as acquisition, supply, and distribution of natural gas produced in Sarawak, beginning July 1, 2024.

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However, PETRONAS has requested that the takeo be postponed, and the Sarawak government has agreed to give them only three months until Oct 1, 2024.

“The discussion is still ongoing with PETRONAS expressing concerns that gas distribution to LNG plants in Bintwillould be affected.

“We respect that arrangement because we also have equity in LNG plants.

“This is what is being discussed between Petros and PETRONAS until Oct 1. Otherwise, we will proceed with the arrangement,” he told a press conference at the English Tea House here today after officiating the Ibu Pertiwi Flag Waving Ceremony at Ibu Pertiwi Square earlier.

On July 26, Business Times reported that PETRONAS is in discussions with the Sarawak and federal governments, including Petros, to reach a mutual resolution regarding gas distribution in Sarawak. — DayakDaily

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