Main points of S'wak-PETRONAS gas distribution solution set, details being fine-tuned, says PM


KUALA LUMPUR: The matter of natural gas distribution between PETRONAS and Petroleum Sarawak Berhad (Petros) has been resolved, says Datuk Seri Anwar Ibrahim.

The Prime Minister said both parties still had to finalise certain details, including those with legal implications.

ALSO READ: Sarawak reaches solution with PETRONAS over gas distribution issue, says Abang Jo

“I have had a constructive session with the Premier of Sarawak, Tan Sri Abang Johari Openg, and a clear decision has been reached.

“We are now fine-tuning the details, parameters and legal implications, but the principles have already been clarified,” he told reporters after officiating the National AI Office (NAIO) at the Malaysia International Trade and Exhibition Centre (Mitec) here on Thursday (Dec 12).

Anwar, however, did not elaborate when asked about the timeline for announcing the outcome of the discussions.

Abang Johari was reported to have said that the matter had been discussed with Anwar during a recent meeting, adding that the Prime Minister himself would announce the outcome soon.

ALSO READ: Petros' role as sole gas aggregator in S'wak non-negotiable, says minister

Sarawak had previously decided that Petros, its state-owned petroleum company, would take over all natural gas trading activities in the state from July 1.

PETRONAS requested a postponement, citing concerns over the impact on gas distribution to the LNG plant in Bintulu.

In July, Sarawak granted PETRONAS a three-month extension to finalise the supervisory arrangement for gas distribution in the state with Petros.

On Oct 31, Abang Johari said Petros had become the sole gas aggregator in the state following a mutual resolution between the two petroleum companies regarding distribution arrangements.

Nevertheless, hours after Abang Johari’s announcement, PETRONAS clarified that discussions on the proposed implementation of the Gas Distribution Ordinance (DGO) had not yet been finalised, with negotiations still ongoing to align the interests and objectives of all parties.

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