SINGAPORE: Discussions between the Sarawak government and Petroliam Nasional Berhad (Petronas) regarding the regulating of liquefied natural gas (LNG) distribution in the state are still ongoing.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said Petronas remains a strategic partner of the Sarawak government through Petroleum Sarawak Berhad (Petros).
He clarified that recent media reports citing the negotiations over oil and gas rights between Petronas and Sarawak were at a standstill are somewhat inaccurate.
“There has been much debate about this over the past two days, but it seems to be somewhat inaccurate, possibly due to incomplete information and data.
“LNG is still available, and what has happened is that the Sarawak government, through Petros and under the Gas Distribution Ordinance, has been granted authority as the sole gas aggregator in Sarawak, which was previously regulated by Petronas.
“So now, negotiations are still ongoing between the two parties,” he said during a press conference after delivering a keynote address at the Asia Pacific Petroleum Conference (APPEC) 2024 here on Monday (Sept 9).
Abang Johari emphasised that the state government holds equity in LNG and that there has been no change regarding LNG.
He further clarified that all Memorandums of Understanding (MoUs) signed earlier concerning the procurement, supply, and distribution of natural gas are still in effect.
Recently, a Channel News Asia (CNA) report suggested that Petronas might take legal action following Sarawak’s claim to control oil and gas.
Meanwhile, Petronas President Tan Sri Tengku Muhammad Taufik was quoted as saying that while the Sarawak government and Petros have assured that the LNG supply would not be disrupted, he noted that they had been “scrutinised” to ensure that LNG continues to flow to their respective buyers.
Also present during the press conference was State Secretary Datuk Amar Mohamad Abu Bakar Marzuki.