High Court dismisses Petronas bid to stay Petros' suit over gas supply payment
KUCHING: The High Court here today dismissed an application by Petroliam Nasional Berhad (Petronas) for a stay of proceedings of an originating summons (OS) by Petroleum Sarawak Berhad (Petros) to nullify RM7.95 million bank guarantee demand by Petronas.
Judicial Commissioner Datuk Faridz Gohim Abdullah, who made the ruling, said that there are no special circumstances and compelling reasons for the originating summons to be stayed pending full and final disclosure of prior proceedings.
He also fixed June 11 for a hearing of the OS filed by Petros pending the outcome of an application by Petronas to appeal against today's ruling.
In the OS, Petros is seeking a declaration that the demand made by Petronas on Oct 14, 2024, on its bank guarantee is unconscionable, unlawful and therefore null and void.
The demand concerns payment for natural gas supplied by Petronas to Petros under a gas supply agreement dated Dec 30, 2019.
In a previous hearing, Petros through its counsel, Sim Hui Chang has pleaded that the said agreement has been frustrated by the amendment to Section 7 of the Distribution of Gas Ordinance (DGO) 2016, enacted in November 2023, which states that no person other than the gas aggregator may supply or distribute gas in Sarawak without a licence issued by the Director of Gas Distribution.
Petros contended that it is unconscionable for Petronas to demand payment for gas supplied unlawfully, in contravention of the Ordinance.
Petronas' counsel, Alex Ngu however, denied that it is subject to the DGO, asserting that it should only be bound by the Petroleum Development Act (PDA) 1974.
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