Premier Sets Deadline for Gas Distribution Discussions
KUCHING – Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has set a firm deadline for the ongoing gas distribution discussions between Petroliam Nasional Berhad (Petronas) and Petroleum Sarawak Berhad (Petros). The discussions must be concluded by October, marking a critical milestone in Sarawak’s energy sector negotiations.
Initial Postponement Granted
Premier Abang Johari revealed that Petronas had initially requested a postponement from the original July 1 deadline. This request was granted, but with a firm stipulation that the matter must be resolved within three months. The new deadline for concluding these discussions is October.
“It must be completed by October; otherwise, we will proceed with the regulation. From a regulatory standpoint, it is Petros who has the authority to regulate our gas distribution and gas pipelines,” Abang Johari stated.
Ongoing Discussions and Key Concerns
The Premier noted that discussions are ongoing, with significant attention given to the gas pipeline infrastructure, particularly concerning liquefied natural gas (LNG). Both Petronas and Petros are working to address these concerns, respecting each other’s arrangements and equity in LNG investments.
“We have assured them that we respect that arrangement because we also have equity in LNG, so these are the discussions between Petros and Petronas,” Abang Johari added.
Collaborations and Agreements
The Premier also highlighted that other stakeholders have already signed agreements with Petros. Notable companies including PTTEP (PTT Exploration and Production Public Company Limited), Mubadala Energy, and Shell have formalized their collaborations. ExxonMobil has also expressed its intent to enter the Sarawak market.
“From a gas regulation standpoint and in terms of gas exploration, there have been discussions between Petros, which has been given the authority as our resource manager, and the contractors,” Abang Johari said.
Petronas’s Commitment to a Strategic Partnership
On July 26, Petronas reaffirmed its commitment to reaching a mutually agreeable resolution with both the state and federal governments, alongside Petros. The company acknowledged the need to balance various constraints and emphasized its role as a strategic partner to Sarawak.
“Petronas is committed to being a strategic partner to Sarawak, working to maintain a thriving and conducive investment climate in Malaysia,” the company stated.
What’s Next?
As the October deadline approaches, all eyes will be on the final negotiations between Petronas and Petros. The outcome of these discussions will significantly impact the regulation and management of Sarawak’s gas distribution and infrastructure.
Stakeholders and industry experts will be closely monitoring the developments to ensure that the regulatory framework supports both the state’s economic interests and the operational needs of major energy players.