KUCHING: Commercial negotiations between PETRONAS and Petroleum Sarawak Bhd (Petros) are expected to conclude by the end of the year.
Sarawak Utility and Telecommunication Minister Datuk Seri Julaihi Narawi said Petros was fine-tuning the discussions to finalise a commercial agreement by Dec 31 at the latest.
"We hope the agreement can be finalised for our mutual interests, particularly in terms of Sarawak's efforts to implement the Sarawak Gas Roadmap.
"We believe PETRONAS can play an important joint role with Petros to make the roadmap a success," he said in his winding-up speech at the Sarawak Legislative Assembly on Monday (Dec 1).
The roadmap aims to increase domestic gas usage from the current 7% to at least 30% by 2030.
Julaihi called on PETRONAS to prioritise the agreement with Petros, especially after the national oil corporation recently announced new deals with international partners in Italy and France.
He said Sarawak was committed to negotiating professionally and collaboratively.
"The spirit of cooperation that was previously agreed on should be translated into immediate action by all parties," he added.
Julaihi also noted that the Federal and Sarawak governments signed a joint declaration on May 21, affirming that all federal and state laws relating to the distribution of gas in Sarawak coexist and must be respected by all parties, including PETRONAS and Petros.
In Sarawak, he said, the distribution of gas and related activities are subject to the state Distribution of Gas Ordinance 2016.
Under the Ordinance, all entities carrying out activities related to the distribution and supply of gas must apply for a licence.
"On Aug 16, my ministry issued a financial penalty notice to an entity operating without a licence to ensure full compliance with the Ordinance," he said.
He added that 14 upstream gas players had been issued gas retail licences under the Ordinance.
