SARAWAK has imposed RM120 million in penalties on five oil and gas companies for allegedly operating without valid gas distribution licences under the state’s Gas Distribution Ordinance 2016 (DGO 2016), says Utility and Telecommunication Minister Datuk Seri Julaihi Narawi.
During his winding up speech at DUN Complex this afternoon (May 18), he asserted that, under DGO 2016, Petroleum Sarawak Berhad (PETROS) is the sole gas aggregator in Sarawak to implement with its main functions covering the procurement, supply, distribution, and sale of natural gas in the state.
“A Joint Declaration was signed on 21 May last year between the Federal Government and the Sarawak Government.
“It stipulates that all laws related to gas distribution shall be mutually recognised and respected by all parties, including PETROS and PETRONAS.
“Although the matter is still under legal process, enforcement will continue to be carried out in accordance with valid laws applicable to all parties operating in Sarawak,” he added.
At the same time, he said the Sarawak government remains committed to working with PETRONAS on the energy transition and low-carbon economy agenda, to ensure that the implementation of the Sarawak Gas Roadmap (SGR) continues to be strengthened in an orderly and lawful manner.
He further noted that the action comes as Sarawak strengthens regulatory control over its gas resources, which account for 43 to 46 trillion standard cubic feet which is around 60 per cent of Malaysia’s total gas reserves.
“Only 7.1 per cent of natural gas produced in Sarawak is currently used for domestic needs, while the remainder is exported.
“Sarawak is capable of managing and regulating its own natural gas resources to ensure they are utilised optimally and in an orderly manner, as well as to maximise returns for industrial development and the well-being of the people of Sarawak and Malaysia.”
