KUALA LUMPUR (July 22): Petroleum Sarawak Bhd, the state-owned oil and gas company also known as Petros, signed gas sale agreements (GSAs) with Sarawak Petchem Sdn Bhd and Sarawak Energy Bhd to kick off its role as Sarawak's sole gas aggregator to buy and sell all natural gas in the state.
The GSAs will allow Sarawak Petchem to have access to gas for its methanol plant and provide fuel for Sarawak Energy's power plants, Petros said in a statement.
“The continued growth of Sarawak’s economy requires availability of natural gas as fuel for power generation, commercial industries and industrial feedstock,” Petros said. “It is envisaged that 30% of the gas should be allocated for domestic needs by 2030.”
Sarawak Premier Tan Sri Abang Johari Tun Openg witnessed the exchange of documents for Petros' first GSAs at the launch of the Sarawak Methanol Complex in Bintulu on Monday.
Other sale agreements to be finalised by year-end
All such agreements are expected to be signed before year end to bring all downstream and upstream gas players in compliance with the distribution gas ordinance (DGO) under Sarawak state law.
It is understood there are 23 upstream and nine downstream players involved in the process, which also entails Petros signing gas purchase agreements (GPAs) with all upstream gas producers.
Commenting on the signings, Petros group chief executive officer Datuk Janin Girie said in the coming months, it look forward to signing all the other gas sales and purchase agreements with upstream gas sellers and downstream gas buyers.
Janin said as the gas aggregator, Petros is entrusted to invest in the development, expansion, management and maintenance of critical gas and energy infrastructure statewide.
Presently, Petros is progressing the development of four gas hubs in Kuching, Miri, Samalaju and Bintulu respectively under the Sarawak Gas Roadmap.
These hubs, serving as central points for gas distribution through the 'hub-and-spoke' delivery model, will enhance access to affordable gas and create industrial investment opportunities.
This includes the new gas trunkline Petros is executing to deliver gas from Kidurong to the Samalaju Industrial Park.
Janin said the ongoing implementation of the roadmap and the development of carbon capture, utilisation and storage infrastructure will be the engine of growth, uplifting and transforming Sarawak into an economic powerhouse for the nation and the region.
"These new infrastructure and value-adding gas-based projects are expected to collectively create over 100,000 high-quality jobs across the state,” he said.
On Feb 1, Petros was appointed as the sole gas aggregator for Sarawak to procure all natural gas produced in the state by upstream gas producers, for the distribution, supply and sale to all downstream gas buyers.
The appointment follows the passing of the tabulated bill for the amendment to the DGO at the Sarawak State Legislative Assembly in November last year.