Petros is sole gas aggregator, period

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THE appointment of Petroleum Sarawak Berhad (Petros) as the sole gas aggregator is non-negotiable, said Utility and Telecommunication Minister Datuk Seri Julaihi Narawi.

He clarified that ongoing discussions between Petros and Petroliam Nasional Berhad (Petronas) do not involve any negotiations on the former’s role as the exclusive gas aggregator in the state.

He added that the amended Distribution of Gas Ordinance 2016 (DGO 2016) mandates compliance with licensing requirements by all parties, including Petronas.

“The Sarawak government, through Petros, is still in technical discussions with Petronas to ensure compliance with all requirements under the Ordinance.

“Therefore, I would like to emphasise once again that the appointment of Petros as the sole gas aggregator is non-negotiable, meaning no other gas aggregator exists in Sarawak except Petros,” he said.

Julaihi made these remarks in response to a query from Lidam Assan (GPS-Katibas) during the question and answer session on Wednesday (Nov 13).

He added that the appointment of Petros will enable the fast-tracked development of the Sarawak Gas Roadmap (SGR), with infrastructure and value-added gas-based projects expected to create over 100,000 high-quality jobs statewide.

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He said this is projected to boost Sarawak’s Gross Domestic Product (GDP) by 8 per cent annually, supporting the objectives of the Post-Covid-19 Development Strategy (PCDS) 2030.

On Oct 31, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said Petronas had agreed in principle regarding the designation of Petros as the sole aggregator for natural gas in the state.

He stressed that Sarawak operates within the legal framework of the Petroleum Development Act 1974 and the Oil Mining Ordinance 1958 for gas distribution.

However, Petronas clarified a few hours later that discussions with Petros on implementing the DGO 2016 were still ongoing.

Petronas said that these discussions aim to align the interests and objectives of all parties while respecting existing contractual arrangements and ensuring commitments to investors and customers are maintained.

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