Sarawak's Utility and Telecommunication Minister has expressed hope that a commercial agreement between the state-owned Petroleum Sarawak (Petros) and national energy company Petronas on gas allocation and marketing will be finalized by December 31. The agreement is seen as crucial for implementing the Sarawak Gas Roadmap (SGR), with the state government believing Petronas plays an important collaborative role in this effort.

Criticism of Petronas's Priorities

However, the minister noted a discrepancy, finding it strange that Petronas has recently announced new cooperation agreements with international partners from Italy and France but has not shown the same priority or determination to finalize the long-delayed agreement with Petros. This was described as Petronas prioritizing foreign partners while ignoring its long-overdue responsibility to Sarawak. The call for urgency was supported by a youth leader from Sarawak’s ruling coalition.

Petros's Role and Regulatory Framework

Petros has been appointed as Sarawak's sole gas aggregator, effective February 1, 2024, responsible for the procurement, supply, distribution, sale, and network management of natural gas in the state. These activities are regulated under the state's Distribution of Gas Ordinance 2016 (DGO 2016), which functions similarly to the federal Gas Supply Act 1993 that is not applicable in Sarawak. All parties involved in gas distribution and supply must apply for a licence under this ordinance.

Ongoing Negotiations and Legal Dispute

In May, a joint declaration was signed by federal and state government heads, establishing an understanding for Petronas and Petros to operate according to federal and state laws and laying a foundation for collaboration. However, this declaration does not automatically nullify an ongoing legal dispute between the two entities. The Kuching High Court has set January 30, 2026, to deliver its judgment on this dispute.