KUCHING: State-owned Petroleum Sarawak Bhd (Petros) has taken full control and authority of the supply, sales and distribution of natural gas in Sarawak after signing a domestic gas agreement with Petronas.
With the takeover, effective Jan 1, Petros is now the single entity to supply, sell and deliver domestic gas to Sarawak homes, businesses and industries.
Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan said this meant Sarawak was now in a strong position to enhance the state's attractiveness as a preferred investment destination and boost its development towards a high-income economy by 2030.
"With this arrangement, we can now leverage on our gas resources to accelerate our economic development through more high-value downstream petrochemical activities.
"The state plans to establish a robust downstream petrochemical industry to increase participation in the higher value chain and create a more sustainable development for Sarawak," he said at the signing ceremony here on Wednesday (Feb 12).
Awang Tengah also said Sarawak planned to attract more investments in downstream oil and gas industries by making more gas available as feedstock.
He said the state previously missed out on investment opportunities as it was not able to secure the supply of gas for them.
"We hope this arrangement will give confidence to investors who are keen to invest in downstream oil and gas activities.
"Petros must now work hard to ensure that there will always be sufficient supply of gas for industrial, commercial and residential requirements, with the support of Petronas," he said.
Petronas president and group CEO Tan Sri Wan Zulkiflee Wan Ariffin said Petros, through its subsidiary Petros Gas, would assume the role of gas transporter and aggregator following the sale and purchase of gas distribution businesses and assets in Miri and Bintulu under the commercial arrangement.
Additionally, he said, Petronas would provide long-term supply of natural gas for Petros' onward sales to customers in Miri and Bintulu.
"This partnership reflects Petronas' commitment to collaborate with and support the Sarawak government through Petros in realising their ambition to be a more active player in its domestic oil and gas industry," he said.
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