THE Ministry of Utility and Telecommunication will facilitate collaboration between Petroleum Sarawak Berhad (PETROS) and Petroliam Nasional Berhad (PETRONAS) on oil and gas matters in the state.
Its Minister Datuk Seri Julaihi Narawi said any exemption requests by PETRONAS from licensing requirements for non-conflicting activities with the role of PETROS as gas aggregator such as the supply sale, retail or distribution of gas will be considered in accordance with the law.
“The Prime Minister and Premier have in their Joint Declaration dated May 21, 2025, categorically stated that federal and state laws on Distribution of Gas must be respected by all persons, including PETROS and PETRONAS, undertaking the business of distribution and supply or sale of gas in Sarawak.
“The Joint Declaration acknowledged that PETROS is the gas aggregator appointed by the Sarawak government in the exercise of its executive authority, and both the Prime Minister and Premier have expressly said PETROS’s appointment as gas aggregator must be respected by all persons undertaking business of gas distribution in Sarawak,” he said.
He said this in his ministerial winding-up speech at the Sarawak Legislative Assembly (DUN) sitting here today.
Julaihi said all agreements and arrangements pertaining to the supply and sale of natural gas in Sarawak must align with PETROS’ role as gas aggregator as stated in the Joint Declaration.
“All industry players and entities including PETRONAS must conduct their business of gas distribution in full compliance with this Joint Declaration.
“Therefore, all parties involved in activities related to the distribution and supply of gas are required to apply for a licence under Section 7 of the Distribution of Gas Ordinance, 2016 (DGO 2016).
“Failure to comply with this licensing requirement is an offence under Section 20 (criminal case) or Section 21A (civil claim) of the ordinance, and may result in a fine, imprisonment, or both,” he said.
Julaihi added following the amendment to DGO 2016 in 2023, his ministry has implemented several regulatory measures including insurance of a total of 14 activity licenses under Section 7 (g) to upstream industry players and 537 licenses to downstream industry players.
He also said a total of 10 non-compliance notices were also issued to five companies conducting unlicensed activities under Section 7 of the DGO 2016.
“In this regard, I am confident that this Joint Declaration will benefit Sarawak and serve national interest in strengthening investor confidence, particularly among international companies in the gas distribution sector,” he said.
PETROS was appointed as the sole gas aggregator effective February 1 last year to carry out activities related to the procurement, supply, distribution, and sale of natural gas in Sarawak.
The gas aggregator is also responsible for the planning, development, operation, and maintenance of the natural gas distribution network system in Sarawak.
