KUALA LUMPUR: In a landmark move set to redefine Malaysia's energy landscape, a joint declaration signed by both Prime Minister Dato Sri Anwar Ibrahim and the Premier of Sarawak Datuk Patinggi Tan Sri (Dr) Abang Abdul Rahman Zohari Tun Datuk Abang Openg has cemented a collaborative path forward for Malaysia, Sarawak, and the nation's oil and gas industry.

The declaration highlights that all relevant Federal and Sarawak State laws relating to distribution of gas within the State of Sarawak shall coexist and be respected by all parties undertaking such activities in the State of Sarawak, including PETRONAS and PETROS.

"PETRONAS will continue its functions, activities, responsibilities and obligations entrusted to PETRONAS in Malaysia, under the Petroleum Development Act 1974 (PDA 1974) and its regulations," the declaration said, adding that parties shall endeavour to continue to work together to detail out the framework for the benefit of the nation, taking into consideration the aspirations of Sarawak.

"The Sarawak State Government has appointed PETROS as the gas aggregator pursuant to section 7A of the DGO 2016 with effect from 1st of March 2025.

"This appointment made pursuant to the executive authority of the State shall be respected by all parties undertaking the business of marketing, distribution and supply of gas to consumers in the State of Sarawak," the declaration said.

For agreements and arrangements pertaining to the supply and sale of natural gas to consumers in the State of Sarawak, the role of PETROS is in alignment with this declaration.

Any agreements and arrangements between PETRONAS and/or its subsidiaries with third parties for the purpose of LNG sales from upstream operations through to LNG exports to foreign parties shall remain unaffected, it added.

PETRONAS and PETROS shall enter into discussions for the purpose of expanding business cooperation for the State of Sarawak domestic gas needs, for the joint collaboration on projects for the implementation of the 1.2 Bscf/d in support of the Sarawak Gas Roadmap; as well as other green energy, hydrogen and power generation projects which may be implemented by both PETRONAS and PETROS, in line with the aspirations of the State of Sarawak to be the energy hub in the ASEAN region.
All discussions on collaborations must be subject to technical and commercial viability.-UKASnews