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Petros signs deals to kick off role as Sarawak's sole authority of natural gas retail & trade

KUALA LUMPUR: Petroleum Sarawak Bhd (Petros) has signed gas sale agreements (GSAs) with Sarawak Petchem Sdn Bhd and Sarawak Energy Bhd to kick off its role as Sarawak's sole gas aggregator to buy and sell all natural gas in the state. 

This marks the first two GSAs signing for Petros as the gas aggregator, signifying the implementation of the amendment to the state's Distribution of Gas Ordinance, 2016 (DGO, 2016) whereby Petros has been appointed as the sole gas aggregator. 

The two GSAs will enable Sarawak Petchem to have access to gas for its methanol plant and Sarawak Energy for its gas-fired power generation.

Petros group chief executive officer Datuk Janin Girie said the GSAs are a historical milestone in the implementation of the DGO to ensure sufficient natural gas is available to the people and for the industrial development of Sarawak.

He also said that Petros is entrusted to invest in the development, expansion, management and maintenance of critical gas and energy infrastructure statewide.

"We appreciate the trust placed upon us by the Sarawak government and the Ministry of Utility and Telecommunication Sarawak to secure domestic natural gas resources for the short, medium and long-term needs," he said in a statement.

As the gas aggregator, Petros said it will ensure that gas export and gas for local value-adding are allocated "strategically and fairly.

"The continued growth of Sarawak's economy requires availability of natural gas as fuel for power generation, commercial industries and industrial feedstock.

"It is envisaged that 30 per cent of the gas should be allocated for domestic needs by 2030," it said. 

To support Sarawak's aspiration to become a high-income developed state by 2030, Janin said Petros continues its efforts to deliver real impacts through the group's strategic role as the gas aggregator. 

He said the ongoing implementation of Sarawak Gas Roadmap (SGR) and the development of carbon capture, utilisation and storage (CCUS) infrastructure will be the engine of growth, uplifting and transforming Sarawak into an economic powerhouse for the nation and the region. 

"These new infrastructure and value-adding gas-based projects are expected to collectively create over 100,000 high-quality jobs across the state for Sarawak.

"In the coming months, we look forward to signing all other gas sales and purchase agreements with upstream gas sellers and downstream gas buyers," he added.

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