SEDC gets green light from S’wak govt to sell downstream O&G products under own brand

Nanta at at the handing over of letter for LPG Regulatory Exemption for Sarawak held at the Chief Minister's Office in Wisma Bapa Malaysia today.

By Ling Hui

KUCHING, Sept 9: The Sarawak government has decided to allow the Sarawak Economic Development Corporation (SEDC) Energy Sdn Bhd to conduct its own downstream sales of petrol and diesel under its own brand as a full-fledged oil company.

Minister of Domestic Trade and Consumer Affairs (KPDNHEP) Dato Sri Alexander Nanta Linggi, when announcing this, said the decision is wise due to the huge market of downstream oil and gas (O&G) and to increase competitiveness in the industry which will result in improved quality for the people.

“At the same time, SEDC’s involvement as a Sate government-owned investment entity in this downstream business is seen as an opportunity to generate income for Sarawak and increase Sarawak’s involvement in the huge O&G industry which is one of the main contributors to GDP (Gross Domestic Product),” he said.

Seeing this as a testament to the confidence in the Sarawak government and SECS’s ability to engage the wholesale and retail business of petroleum, he said it also reflects the special relationship between the Federal and State governments that have been established for so long.

“I would also like to address here that this will not be possible without the dedication and leadership of Chief Minister Datuk Patinggi Abang Johari Tun Openg.

“I further hope that these two things will be a catalyst for the vibrancy of domestic trade activities to improve the economy of Sarawak in particular and Malaysia in general in line with the National Recovery Plan (NRP),” he said at the handing over of letter for Liquified Petroleum Gas (LPG) Regulatory Exemption for Sarawak held at the Chief Minister’s Office in Wisma Bapa Malaysia today.

Previously on June 1, it was announced that Sarawak LPG wholesalers and retailers no longer need to apply for permits and licenses from the Federal government through KPDNHEP to distribute LPG in Sarawak.

Nanta, who is also Kapit MP, said this decision was made based on the understanding that Sarawak should self-regulate the governance of its downstream gas industry as well as to increase the ease of doing business.

“This is the consensus reached from detailed discussions in the meeting of the Special Council on Malaysia Agreement 1963 (MA63) on April 13, which was chaired by the then Prime Minister Tan Sri Muhyiddin Yassin, Chief Ministers of Sarawak and Sabah as well as federal ministers.

“It was agreed that exemption is given to Distribution of Gas Ordinance (DGO) license holders issued by the Sarawak government, from the need to obtain permission under Petroleum Development Act (PDA) 1974 and license under the Control of Supplies Act (CSA) 1961,” he added. — DayakDaily