KUCHING: Sarawak has issued gas retail licences to 13 upstream gas sellers to carry out supply and sales of natural gas in the state.
State Utility and Telecommunication Minister Datuk Seri Julaihi Narawi said the licences were issued under the Distribution of Gas Ordinance 2016.
“Based on the Ordinance, we have appointed Petroleum Sarawak Bhd (Petros) as the sole gas aggregator dealing with transactions, buying, selling, procurement and distribution of gas in Sarawak.
“If there are other parties that want to be involved in gas transactions, especially upstream companies, they must be licensed,” he told reporters after the licence handover ceremony here on Wednesday (Aug 7).
Julaihi said the licensed companies must sell their gas to Petros.
He said licence applications from two more upstream companies were currently being processed and should be approved soon.
“Altogether there are 15 upstream gas players, so the majority have applied and been approved for licences,” he added.
Earlier in his speech, Julaihi said Petros’ role as the gas aggregator included managing the procurement of natural gas from all sources for distribution and supply in Sarawak and developing, managing and maintaining gas distribution networks and systems.
He said Petros would ensure fair and strategic gas allocation for export and local use.
“To deliver on Sarawak’s post-Covid development strategy and ensure long-term gas supply security, it is envisaged that 30% of the gas should be allocated for domestic needs by 2030,” he said.
Julaihi also said the 13 upstream gas players who had received licences were required to enter into a gas purchase agreement with Petros by Oct 1.
He said the agreement would enable them to legally supply natural gas to Petros, ensuring that consumers would have access to reliable gas supply throughout Sarawak.
“Failure to meet the timeline will be deemed as non-compliance to the Distribution of Gas Ordinance and is an offence under Section 20,” he added.
The 13 companies which received licences are Petroleum Sarawak Exploration and Production Sdn Bhd, PTTEP Sarawak Oil Limited, SapuraOMV Upstream (Sarawak) Inc, Sarawak Shell Bhd, PETRONAS Carigali Sdn Bhd, PT Pertamina Malaysia Eksplorasi Produksi, Diamond Energy Sarawak Sdn Bhd, Mubadala Energy Ltd, ROC Oil (Sarawak) Sdn Bhd, JX Nippon Oil and Gas Exploration (Malaysia) Ltd, Dialog Resources Sdn Bhd, Vestigo Petroleum Sdn Bhd and E&P Malaysia Venture Sdn Bhd.
