KUCHING: To enhance Malaysia’s energy governance, Prime Minister Datuk Seri Anwar Ibrahim and Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg have signed a joint declaration that formalises a cooperative framework for Malaysia, Sarawak, and the national oil and gas industry in Kuala Lumpur.
The declaration outlines that all relevant Federal and Sarawak State laws relating to distribution of gas within the State of Sarawak shall coexist and be respected by all parties undertaking such activities in the State of Sarawak, including PETRONAS and PETROS.
“PETRONAS will continue its functions, activities, responsibilities and obligations entrusted to PETRONAS in Malaysia, under the Petroleum Development Act 1974 (PDA 1974) and its regulations.
“Parties shall endeavour to continue to work together to detail out the framework for the benefit of the Nation, taking into consideration the aspirations of the State of Sarawak,” said the declaration, which was signed by both Anwar and Abang Johari at Putrajaya today.
A key highlight of the declaration is the appointment of PETROS by the Sarawak Government as the gas aggregator pursuant to section 7A of the DGO 2016 with effect from March 1.
“This appointment, made pursuant to the executive authority of the State, shall be respected by all parties undertaking the business of marketing, distribution and supply of gas to consumers in the State of Sarawak.
“For agreements and arrangements pertaining to the supply and sale of natural gas to consumers in the State of Sarawak, the role of PETROS is in alignment with this declaration.
“Any agreements and arrangements between PETRONAS and/or its subsidiaries with third parties for the purpose of LNG sales from upstream operations through to LNG exports to foreign parties shall remain unaffected,” the declaration said.
PETRONAS and PETROS shall enter into discussions for the purpose of expanding business cooperation for the State of Sarawak domestic gas needs, in the following areas, as such joint collaboration on projects for the implementation of the 1.2 Bscf/d in support of the Sarawak Gas Roadmap and other green energy, hydrogen and power generation projects which may be implemented by both PETRONAS and PETROS, in line with the aspirations of the State of Sarawak to be the energy hub in the ASEAN region.
All discussions on collaborations must be subject to technical and commercial viability.
