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Sarawak urges swift conclusion to Petronas-Petros gas distribution talks

KUCHING: Discussions are ongoing between the national oil and gas company Petroliam Nasional Bhd (Petronas) and Petroleum Sarawak Bhd (Petros) for the implementation of the sole gas aggregator arrangements under the Distribution of Gas Ordinance.

Sarawak Utility and Telecommunication Minister Datuk Seri Julaihi Narawi, however, said the state government reiterates that discussions ought to be concluded at the soonest.

"The Sarawak government reiterates that under the Ordinance, Petros is appointed the sole gas aggregator. There are no other gas aggregators in the state," he said in a statement issued late last night.

Julaihi issued the statement in response to Petronas' clarification earlier in the evening that discussions with Petros on the proposed implementation of the Distribution of Gas Ordinance (DGO) are still ongoing.

The national oil and gas company said ongoing discussions were aimed at aligning the interests and objectives of all parties, while preserving the sanctity of existing contractual arrangements and ensuring that commitments to investors as well as customers can continue to be fulfilled.

Earlier yesterday, Sarawak Premier Tan Sri Abang Johari Openg had announced that Petronas had concluded its negotiations with Petros over gas distribution in the state.

Abang Johari said Petronas had unofficially informed state Utility and Telecommunications Minister Datuk Seri Julaihi Narawi that it had agreed in principle for Petros to serve as the sole gas aggregator in the state.

He added an official letter from Petronas will follow.

On July 28, Abang Johari said the state government had set an Oct 1 deadline for Petronas to resolve the gas distribution issue in the state with Petros.

The state government had previously decided that Petros would assume control over the buying and selling of gas in Sarawak from July 1.

Petronas, however, requested a delay, citing potential disruptions to gas distribution for LNG plants in Bintulu.

The state government agreed to a three-month extension, extending the deadline to Oct 1.

On Sept 24, the state government, Petros and Petronas, in a joint statement, said talks on gas distribution in the state would conclude soon.

They said Petronas was not considering legal action against the state government and Petros, and all parties respected and abided by federal and state laws regarding gas distribution.

The joint statement followed a high-level meeting attended by Abang Johari, Petronas president and group chief executive officer Datuk Tengku Muhammad Taufik Tengku Aziz, State Secretary Datuk Amar Abu Bakar Marzuli, and Petros CEO Datuk Janin Girie.

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