KUCHING: National oil and gas company Petroliam Nasional Bhd (Petronas) has concluded its negotiations with Petroleum Sarawak Bhd (Petros) over gas distribution in the state.

Premier Tan Sri Abang Johari Openg said Petronas had unofficially informed state Utility and Telecommunications Minister Datuk Seri Julaihi Narawi that it had agreed in principle for Petros to serve as the sole gas aggregator in the state.

"Petronas has informed Julaihi unofficially, but we will receive the official letter soon," he said after attending a Deepavali open house at the residence of Sarawak Sikh Temple Association president Datuk Dr Kalwinder Singh Khaira.

He added that further discussions would be held between Petros and Petronas to finalise the formula and principle.

The premier was accompanied by Deputy Premier Datuk Amar Douglas Uggah Embas, Deputy Premier Datuk Amar Dr Sim Kui Hian, Julaihi, Satok assemblyman and Sarawak Energy Bhd chairman Datuk Ibrahim Baki and Kuching South City Council Mayor Datuk Wee Hong Seng.

On July 28, Abang Johari said the state government had set an Oct 1 deadline for Petronas to resolve the gas distribution issue in the state with Petros. However, Petronas requested an extension to complete negotiations.

The state government had previously decided that Petros would assume control over the buying and selling of gas in Sarawak from July 1. Petronas requested a delay, citing potential disruptions to gas distribution for LNG plants in Bintulu. The government agreed to a three-month extension, extending the deadline to Oct 1.

On Sept 24, the state government, Petros and Petronas, in a joint statement, said talks on gas distribution in the state would conclude soon.

They said Petronas was not considering legal action against the state government and Petros, and all parties respected and abided by federal and state laws regarding gas distribution.

The joint statement followed a high-level meeting attended by Abang Johari, Petronas president and group chief executive officer Datuk Tengku Muhammad Taufik Tengku Aziz, State Secretary Datuk Amar Abu Bakar Marzuli, and Petros CEO Datuk Janin Girie.

https://www.nst.com.my/news/nation/2024/10/1128006/petronas-petros-conclude-sarawak-gas-distribution-talks