22 Jul PETROS as Aggregator Signs Gas Sales Agreements (GSAs) with Sarawak Petchem and Sarawak Energy

PETROS AS AGGREGATOR SIGNS GAS SALES AGREEMENTS (GSAS) WITH SARAWAK PETCHEM AND SARAWAK ENERGY

Date: 22 July 2024

PETROS effects its role as Gas Aggregator to buy and supply natural gas in Sarawak.

22 July 2024, Bintulu - State-owned oil and gas company, Petroleum Sarawak Berhad (PETROS) recently signed a Gas Sales Agreement (GSA) with both Sarawak Petchem Sdn Bhd (Sarawak Petchem) and Sarawak Energy Berhad (Sarawak Energy) respectively to commence PETROS' role as the sole Gas Aggregator for Sarawak to buy and sell all natural gas in Sarawak.

This milestone marks the first two GSAs signing for PETROS as the Gas Aggregator, signifying the implementation of the Amendment to the State's Distribution of Gas Ordinance, 2016 (DGO, 2016) whereby PETROS has been appointed as the sole Gas Aggregator. These two GSAs will enable Sarawak Petchem to have access to gas for its methanol plant and Sarawak Energy for its gas-fired power generation.

With the responsibility as Gas Aggregator, PETROS will ensure that gas allocation for export and for local value-add is determined strategically and fairly. The continued growth of Sarawak's economy requires availability of natural gas as fuel for power generation, commercial industries and industrial feedstock. To deliver on Sarawak Post COVID-19 Development Strategy (PCDS 2030) and ensure long-term gas supply security, it is envisaged that 30% of the gas should be allocated for domestic needs by 2030.

The Premier of Sarawak, Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari Tun Datuk Abang Haji Openg witnessed the exchange of documents for both GSAs at the launch of the Sarawak Methanol Complex in Bintulu during Sarawak Day. All such agreements are expected to be signed before year-end to bring all downstream and upstream gas players in compliance with the DGO.

Commenting on the signings, PETROS Group Chief Executive Officer, Dato Janin Girie said, "The signing of both GSAs with Sarawak Petchem and Sarawak Energy is a historical milestone in the implementation of the DGO to ensure sufficient natural gas is available to the people and for the industrial development of Sarawak. We appreciate the trust placed upon us by the Sarawak Government and the Ministry of Utility and Telecommunication Sarawak to secure domestic natural gas resources for the short, medium and long-term needs."

He also emphasised that the Gas Aggregator is entrusted to invest in the development, expansion, management and maintenance of critical gas and energy infrastructure statewide. Presently, PETROS is progressing the development of four Gas Hubs in Kuching, Miri, Samalaju and Bintulu under the Sarawak Gas Roadmap (SGR). These hubs, serving as central points for gas distribution through the "Hub-and-Spoke" delivery model, will enhance access to affordable gas and create industrial investment opportunities. This includes the new gas trunkline PETROS is executing to deliver gas from Kidurong to the Samalaju Industrial Park.

"To support Sarawak's aspiration to become a high-income developed State by 2030, PETROS continues our efforts to deliver real impacts through our strategic role as the Gas Aggregator. Our ongoing implementation of SGR and the development of Carbon Capture, Utilisation and Storage (CCUS) infrastructure will be the engine of growth, uplifting and transforming Sarawak into an economic powerhouse for the nation and the region. These new infrastructure and value-adding gas-based projects are expected to collectively create over 100,000 high-quality jobs across the State for anak-anak Sarawak," Dato Janin highlighted.

He added, "In the coming months, we look forward to signing all other Gas Sales and Purchase Agreements with upstream gas sellers and downstream gas buyers."

Effective 1 February 2024, PETROS was appointed as the sole Gas Aggregator for Sarawak to procure all natural gas produced in Sarawak by upstream gas producers, for the distribution, supply and sale to all downstream gas buyers. The appointment follows the passing of the tabulated Bill for the Amendment to the DGO, 2016 at the Sarawak State Legislative Assembly (DUN) in November 2023.

Gales Sales Agreement (GSA) exchange between PETROS and Sarawak Energy, represented by PETROS Group Chief Executive Officer, Dato Janin Girie and Sarawak Energy Chief Executive Officer, Datuk Haji Sharbini Suhaili.

Gales Sales Agreement (GSA) exchange between PETROS and Sarawak Petchem, represented by PETROS Group Chief Executive Officer, Dato Janin Girie and Sarawak Petchem Managing Director and Chief Executive Officer, Dato Mohammad Bin Haji Ibrahim.

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