KUALA LUMPUR (Feb 18): While Sarawak respects the federal and state laws pertaining to petroleum and gas development activities there, the state has requested that gas produced in areas offshore western Sarawak and in the continental shelf to be for the state’s “domestic” use, says its Premier Tan Sri Abang Johari Tun Openg.

In a statement, Abang Johari said the request is to ensure that Sarawak will have the supply of 1.2 billion standard cubic feet per day (MMscf/d), which is guaranteed by Petroliam Nasional Bhd (Petronas), to advance the Sarawak Gas Roadmap. 

“The Sarawak government will have to ensure that the guaranteed volume shall be delivered at a fair price or price that would promote investments and industries in Sarawak.

"The Sarawak government, in the national interests, is firmly committed to ensure that the guaranteed volume of gas as well as any additional gas produced from the offshore of western Sarawak and elsewhere in the continental shelf, will be used sustainability, in support of the growth of industries in Sarawak, to meet the demand for energy in Peninsular Malaysia and the production of clean energy, consistent with the declared intention of the federal government that Sarawak will be the clean energy hub for Malaysia,” said the premier in the statement. 

To give perspective, the 1.2 billion MMscf/d requested by Sarawak is around 17% of Malaysia’s current total gas production of seven billion MMscf/d, according to Petronas Activity Outlook 2024-2026.

The guaranteed volume of gas and any additional produced from the requested offshore areas will be used “sustainably”, said Abang Johari, in particular, consistent with the federal government’s “declared intention” for Sarawak to be Malaysia’s clean energy hub.

Abang Johari said a mutual understanding was reached with Prime Minister Datuk Seri Anwar Ibrahim that Petronas and Petros will work together “as partners to advance national and state interest and revenues”, but he also stressed that Sarawak’s interests “would have to be prioritised”.  

Abang Johari said Petros’ role as Sarawak gas aggregator will not affect Petronas’ ability to fulfil its domestic and international contractual obligations.

However, this “must not in any way adversely affect the role of Petros as gas aggregator” and is not inconsistent with the Distribution of Gas Ordinance 2016 (DGO 2016), he added.

Abang Johari’s statement comes after Anwar’s parliamentary statement on Monday concerning Petros assuming control as Sarawak state gas aggregator effective March 1, 2025 and assurances that Petronas’ contractual obligations in Sarawak would be retained.  

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