THE formalisation of the Joint Declaration signed on May 21 reflects the federal government’s acknowledgement of Sarawak’s aspirations and highlights the strong partnership between Sarawak and Putrajaya, anchored firmly in the spirit of true Federalism.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg expressed his appreciation to Prime Minister Datuk Seri Anwar Ibrahim for his leadership and commitment in resolving long-standing regulatory issues between Petroleum Sarawak Berhad (PETROS) and Petroliam Nasional Berhad (PETRONAS).
“This Joint Declaration reaffirms that the federal and state laws on Distribution of Gas shall be respected by all persons undertaking the distribution and supply of gas in Sarawak.
“Federal laws like the Gas Supply Act 1993 do not apply to Sarawak and Sarawak is exempted from the requirements imposed by section 6(1) and (3) of the Petroleum Development Act, 1974 to obtain the permission of the prime minister to undertake distribution of gas business in Sarawak,” he said in his ministerial winding-up speech at DUN complex here today.
Abang Johari also said the Joint Statement also acknowledges Sarawak’s executive authority over distribution of gas.
“The law that governs gas distribution in Sarawak is the Distribution of Gas Ordinance, 2016.
“With the Joint Declaration, any perceived regulatory uncertainty has been removed. With Sarawak’s legislative and executive authority over gas distribution confirmed, Sarawak will ensure regulatory clarity and stability to facilitate the growth of the gas industry.
“The Sarawak government will implement plans to increase gas production within its territory, sustainable utilisation of gas by industries and for production of clean energy,” he said.
He added these efforts will provide ample investment opportunities in the upstream, midstream and downstream activities for both foreign and local investors.
“Such opportunities include the development of carbon capture and storage sites to realise the values of our huge potential gas reserves located in the waters off western Sarawak, so as to secure sufficient gas for the Kuching Low Carbon Gas Hub currently being planned.
“All these projects will increase the GDP for Sarawak by RM120 billion and create 185,000 high income jobs,” he said.
Abang Johari said PETROS as the gas aggregator and resource manager, will play a central role in upgrading and expanding gas distribution infrastructure, ensuring adequate gas supply for industrial and household usage, and developing CCS sites to support these industrial needs at the Kuching Low Carbon Gas Hub.
