State to enter liquified petroleum gas market in 2021

Abang Johari (right) and Hamid launching the Petros LPG cylinders in Kuching.

KUCHING: Sarawak will enter the liquified petroleum gas (LPG) market next year with distribution of gas cylinders by state-owned Petroleum Sarawak Bhd (Petros).

The red cylinders will be distributed in Kuching and Samarahan first before it is extended statewide in 2022.

Petros chairman Tan Sri Hamid Bugo said the supply of LPG would complement its natural gas distribution and support Sarawakians’ need for cooking fuel.

He said Petros currently supplied gas to over 25,000 households and 1,500 commercial customers in Bintulu and Miri through its piped gas grid operated by its wholly-owned subsidiary Sarawak Gas Distribution Sdn Bhd.

“With Petros LPG, we will further support Sarawakians through cleaner, more efficient and safe cooking fuel, ” he said at the launch of Petros LPG by Chief Minister Datuk Patinggi Abang Johari Tun Openg here.

Hamid said Petros would invest in domestic LPG production from its oil and gas assets to reduce the state’s reliance on imported LPG.

He said Petros also aimed to improve fair pricing of its gas cylinders.

“Those in the remote areas of Sarawak, who are least able to afford it, are paying the highest price.

Abang Johari said Petros had the potential to export its LPG in the future.

He said the state government had agreed in principle to supply LPG to west Kalimantan.

“But formal arrangements will need to be made for this, ” he said.

Meanwhile, state Utilities Minister Datuk Seri Dr Stephen Rundi said his ministry would ensure that subsidised LPG benefited the right consumers, especially rural households for whom distribution costs have escalated LPG cylinder prices and created a disproportionate urban-rural pricing gap.

The price of LPG for household use is subsidised by the government and currently set at RM26.60 for a 14kg cylinder.

“Untargeted use of LPG subsidies and the urban-rural pricing gap for household LPG are two areas where the ministry will strengthen efforts with enforcement and stakeholder engagement, ” Rundi said.

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