By DayakDaily Team
KUCHING, May 21: Sarawak and the federal government have agreed for Petroleum Sarawak Berhad (PETROS) to be the sole aggregator in the State.
The decision was announced in a joint declaration today by Prime Minister Datuk Seri Anwar Ibrahim and Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg, marking a historic milestone in Federal-Sarawak cooperation on oil and gas matters.
The declaration, made in the interests of the Federation of Malaysia, Sarawak, and the national oil and gas industry, affirmed that all relevant Federal and Sarawak laws relating to gas distribution in Sarawak shall coexist and be respected by all industry players, including Petroliam Nasional Berhad (PETRONAS) and PETROS.
“PETRONAS will continue to carry out its functions, activities, responsibilities and obligations entrusted to PETRONAS in Malaysia, under the Petroleum Development Act 1974 (PDA 1974) and its regulations.
“Parties shall endeavour to continue to work together to detail out the framework for the benefit of the nation, taking into consideration the aspirations of Sarawak,” the declaration stated.
The leaders noted that the Sarawak government’s appointment of PETROS as aggregator under Section 7A of the Distribution of Gas Ordinance (DGO) 2016, effective March 1, 2025, underscores its executive authority to regulate gas distribution within Sarawak.
Accordingly, all parties engaged in the marketing, distribution, and supply of gas to Sarawak consumers are required to recognise and comply with this mandate.
In alignment with this new role, any agreements or arrangements for the supply and sale of natural gas in Sarawak must reflect PETROS’ central role in domestic gas aggregation.
At the same time, existing and future liquefied natural gas (LNG) export arrangements between PETRONAS, its subsidiaries, and foreign buyers will remain unaffected.
The joint declaration also outlines a framework for future cooperation between PETROS and PETRONAS, where both parties must engage in discussions, including joint ventures and collaborations in domestic gas supply, implementation of the 1.2 billion standard cubic feet per day (Bscf/d) target under the Sarawak Gas Roadmap, and green energy projects such as hydrogen development and power generation.
These projects aim to support Sarawak’s ambition of becoming a regional energy hub within Asean, subject to technical and commercial viability.
All clauses in the joint declaration are to be read as an essential and integral part of a unified agreement, underscoring the commitment of both governments to work together for the long-term benefit of the nation and the aspirations of Sarawak. — DayakDaily
