SARAWAK, through Petroleum Sarawak Berhad (PETROS), is still refining negotiations with Petroliam Nasional Berhad (PETRONAS) to finalise a commercial agreement by Dec 31, 2025, at the latest.
Minister of Utility and Telecommunication Datuk Seri Julaihi Narawi expressed hope that the agreement can be concluded for the benefit of all parties, especially in supporting Sarawak’s efforts to implement the Sarawak Gas Roadmap (SGR).
“We believe PETRONAS can play an important role together with PETROS to ensure the success of SGR. ‘Maju Sarawak, Majulah Malaysia’,” he said in his ministerial winding-up speech during the DUN Sitting here today (Dec 1).
He added that on May 21, the Prime Minister and the Premier signed a Joint Declaration stating that all federal and Sarawak laws related to gas distribution must coexist and be respected by all parties, including PETROS and PETRONAS.
However, Julaihi said he was concerned that in recent weeks, PETRONAS had announced new collaborations with international partners from Italy and France.
“Yet, until now, they have not shown the same level of priority or commitment to finalising the long-delayed agreement with PETROS — the entity entrusted to represent Sarawak’s interests.
“This situation reflects the Malay proverb ‘kera di hutan disusukan, anak di rumah kelaparan’, like prioritising foreign partners while neglecting Sarawak’s long-overdue concerns.
“Sarawak remains committed to negotiating professionally and collaboratively, but hopes that the spirit of cooperation that has been agreed upon does not remain merely on paper, but is translated into immediate action by all stakeholders,” he stressed.
Julaihi said that, in Sarawak, the regulation of gas distribution and related activities falls under the Distribution of Gas Ordinance, 2016 (DGO 2016), which operates in parallel with the Gas Supply Act 1993 — a federal law that does not apply in Sarawak.
Therefore, he said all parties involved in gas distribution and supply activities must apply for a licence under Section 7 of DGO 2016.
He said the Ministry has issued Financial Penalty Notices to entities operating without a licence as an enforcement measure to ensure full compliance with DGO 2016.
“My Ministry emphasises that any upstream gas players conducting activities under Section 7 of DGO 2016 must sign a Gas Purchase Agreement (GPA) with PETROS.
“A copy of this agreement must be submitted to my Ministry for the purpose of licence applications and renewals,” he said.
So far, he said a total of 14 upstream gas players have been issued Retail of Gas licences under Section 7(g) of DGO 2016.
