STATE-OWNED oil and gas exploration company Petroleum Sarawak Bhd (Petros) will, from July 1, take over from Petronas all activities related to the acquisition, supply, distribution, and sale of natural gas in Sarawak.
Utility and Telecommunication Minister Julaihi Narawi told the state assembly that both Petros and Petronas have agreed to sign a “definitive agreement” that would make Petros the sole gas aggregator before that date.
As the sole gas aggregator, Petros will be the sole purchaser of all natural gas produced in the state from all upstream gas producers and seller of the gas to all downstream gas buyers, including liquefied natural gas (LNG) processing plants.
“Petros will also be responsible for overseeing the development, operation, and maintenance of the natural gas distribution network in the state.”
He said the national petroleum company lost the monopolistic rights to all those activities because their “activities were not in line with the Distribution of Gas Ordinance, 2016”.
He said when the amended ordinance came into effect in 2018, Petronas never applied for any license to purchase and sell natural gas in Sarawak.
He told the assembly that under the ordinance, “all parties involved in natural gas distribution activities must obtain licenses from the Sarawak government in accordance with the requirements of the Distribution of Gas Ordinance, as well as the amendments made by the Distribution of Gas (Amendment) Ordinance, 2023”.
“Failure by any party to comply with the provisions of Section 7, Distribution of Gas Ordinance, 2016, is an offense under Section 20, which may incur fines, imprisonment, or both,” he said.
The signing of the “definitive agreement”, Julaihi said, will then enable Petros to finalise the gas purchase agreements (GPA) with all upstream gas producers and gas sales agreements (GSA) with all downstream gas buyers or users by July 1. – May 13, 2024.
