KUALA LUMPUR: Malaysia’s national oil company Petronas’ recognition of Sarawak government-owned Petros as the state’s gas aggregator excludes liquified natural gas (LNG), the government disclosed on Tuesday (Feb 4).
This is among the terms of the settlement between Petronas and Sarawak regarding the east Malaysia state’s efforts for more control over its oil and gas resources, said Azalina Othman Said, Minister in the Prime Minister’s Department (Law and Institutional Reform), in a parliamentary reply.
She added that the agreement was struck at a meeting between Prime Minister Anwar Ibrahim and Sarawak premier Abang Johari Openg on Jan 7.
Petronas and Petros have been in talks since July last year to resolve disputes over gas distribution rights in the state.
Under Malaysia’s Petroleum Development Act (PDA) 1974, Petronas has exclusive control over exploration and distribution of the country’s oil and gas resources.
But in February 2024, Sarawak appointed Petros, or Petroleum Sarawak Berhad, as the state’s sole gas aggregator under its Distribution of Gas Ordinance 2016. Under Sarawak’s state laws, a gas aggregator procures natural gas for distribution or supply, and develops and maintains the state’s gas distribution network.
The eastern state – which has made a series of moves to position itself as an economic powerhouse in Malaysia – contributes almost 90 per cent of Malaysia’s LNG exports.
Malaysia was the world’s fifth-largest exporter of LNG in 2023, according to the International Gas Union’s World LNG Report 2024.
Azalina was responding to a question by Member of Parliament Chong Chieng Jen, who represents the Stampin constituency in Sarawak.
He had sought details of the terms of settlement between Petronas and Sarawak with regard to Sarawak’s rights to the oil and gas extracted from the state.
PETRONAS NOT REQUIRED TO OBTAIN LICENCE IN SARAWAK
Last month, Malaysia Prime Minister Anwar Ibrahim expressed confidence the issues between Petronas and Petros had been resolved.
