KUCHING: The Sarawak government, through Petroleum Sarawak Berhad (Petros), is still in technical discussions with Petroliam Nasional Berhad (Petronas) to ensure compliance with all requirements under the Distribution of Gas Ordinance, 2016.
Utility and Telecommunication Minister Datuk Seri Julaihi Narawi said in the Sarawak Legislative Assembly today that the appointment of Petros as the sole gas aggregator under DGO is not part of the discussions.
"The appointment of Petros is non-negotiable, meaning no other gas aggregator exists in Sarawak," he said when answering questions from Katibas state assemblyman, Lidam Assan.
He advised Petronas to make a decision, as "we have given them enough time to decide, including giving them an extension of time, to comply with all the requirements under DGO."
'Now I can say we are in injury time," he stressed.
Julaihi said he has received a letter from Petronas dated Nov 1 and Petros on Nov 6 this year.
However, he said he would not disclose the contents of the two letters.
He said as the sole gas aggregator, Petros is responsible for carrying out all activities related to the procurement, supply, distribution, and sale of natural gas in Sarawak.
He said it is also accountable for the planning, development, operation, and maintenance of the natural gas distribution network system in Sarawak.
He said the DGO amended in 2023, is a law of the state of Sarawak that aims to ensure all parties, including Petronas, comply with the licensing requirements.
Julaihi also said that as of today his ministry has issued retail gas licences to 13 upstream gas players and 10 downstream gas players.
He warned that failure to comply to the licensing requirement is an offence under section 20 of the Ordinance.
He said Petros has signed several Gas Sales Agreements (GSAs)with downstream gas users, including Sarawak Petchem Sdn Bhd, Sarawak Energy Berhad and Shell MDS Sdn Bhd.
He added the benefits of the appointment of Petros as the sole gas aggregator, include contributing new sources of revenue for Sarawak; prioritising the development of the Sarawak Gas Roadmap (SGR); and generating high-quality job opportunities.
He said the other benefits are allocating natural gas for domestic use and the development of downstream industries and developing infrastructure and the natural gas distribution network in Sarawak, including the development of the Kuching Low-Carbon Hub.
He said the appointment is also to ensure sufficient supply and affordable natural gas prices for the Sarawak market; provide opportunities for the people of Sarawak and local companies to participate in the natural gas distribution industry; and improve the quality of life for Sarawakians by harnessing natural gas resources.
He also said the appointment will enable the fast-tracked development of the Sarawak Gas Roadmap.
"This is expected to create over 100,000 high-quality jobs for Sarawakians," he said, adding that it also contributes to uplifting Sarawak's Gross Domestic Product (GDP) by eight per cent annually, as a key element of the Post-Covid-19 Development Strategy 2030 (PCDS 2030).