Gas distribution talks to conclude by October

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Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg speaking at the press conference.

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KUCHING: The discussion on gas distribution in Sarawak between Petroliam Nasional Berhad (Petronas) and Petroleum Sarawak Berhad (Petros) must be completed by October, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He stated that Petronas had initially requested a postponement from July 1, which was granted, but the matter must be resolved within three months, by 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.

“So, discussions are ongoing. They are concerned about the gas pipeline to LNG (liquified natural gas).

“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,” he told reporters after officiating the inaugural Ibu Pertiwi Flag Raising Ceremony at Dataran Ibu Pertiwi here today.

Abang Johari added that other parties have already signed the necessary documents for collaboration with Petros.

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“PTTEP (PTT Exploration and Production Public Company Limited) has signed, Mubadala Energy has signed, as well as Shell. Furthermore, ExxonMobil wants to come to Sarawak as well.

“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,” he added.

On July 26, Petronas stated that it was currently engaged in discussions with both the state and federal governments, as well as Petros, to reach a mutual resolution regarding gas distribution in Sarawak.

Petronas acknowledged that these discussions aim to recognise each party’s constraints to achieve a satisfactory outcome.

Petronas also emphasised its commitment to being a strategic partner to Sarawak, working to maintain a thriving and conducive investment climate in Malaysia.

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