PETROLIAM Nasional Berhad (Petronas) has acknowledged Petros Sarawak Bhd (Petros) as the sole gas aggregator in Sarawak, with plans to sign a definitive agreement by July 1.
Utility and Telecommunications Minister Datuk Julaihi Narawi said that this move will enable Petros to finalise Gas Purchase Agreements (GPAs) and Gas Sales Agreements (GSAs) by that date.
“With the appointment of Petros as the sole gas aggregator, Petronas is required to cease any natural gas buying and selling activities in Sarawak and transfer their natural gas distribution network and system to Petros.
“Consequently, Petros will assume these roles from Petronas, not only as a buyer and seller of natural gas but also to carry out all activities related to the procurement, supply, and distribution of natural gas produced in Sarawak.
“This transition period will last from July 1, 2024, until January 1, 2025,” he said during his ministerial winding-up speech at the House on Monday.
As such, he said that starting July 1, Petros will handle the procurement and distribution of natural gas in Sarawak, including sales to liquefied natural gas (LNG) processing plants.
“This allows for continuous LNG supply by processing plants to fulfil their existing contracts with LNG buyers abroad, such as in Japan and Korea.
“Furthermore, it will ensure that no financial losses will be incurred by existing investors,” he added.
For future LNG sales, he asserted that plants must negotiate new contracts with Petros in relation to the conditions of supply and delivery out of the state.
Additionally, all gas distribution activities in Sarawak require a licence from the state government, according to the Distribution of Gas Ordinance, 2016 and the Distribution of Gas (Amendment) Ordinance, 2023.
