Federal-Sarawak agreement exempts state from some PDA requirements, says Abang Jo

Free Malaysia Today

2 days ago

Premier Abang Johari Openg said Sarawak will ensure clear, stable regulations to support gas industry growth following the affirmation of its authority over distribution. (Bernama pic)
PETALING JAYA : The agreement by the federal and Sarawak governments as contained in their joint statement exempts the state from certain provisions under the Petroleum Development Act 1974 (PDA), said premier Abang Johari Openg.
Abang Johari told the state assembly today the joint statement signed last Wednesday affirmed the recognition of Sarawak's executive authority over the distribution of gas within its territory and removed any perceived regulatory uncertainty.
'Federal laws like the Gas Supply Act 1993 do not apply to Sarawak, and the state is exempt from the requirements imposed by Sections 6(1) and 6(3) of the PDA to obtain the prime minister's permission to undertake distribution of gas business in Sarawak.
'This joint declaration reaffirms that federal and state laws on distribution of gas shall be respected by all persons undertaking the distribution and supply of gas in Sarawak,' The Borneo Post quoted him as saying.
Last week, Prime Minister Anwar Ibrahim said the joint statement recognised Sarawak's growing capabilities and its rights under the PDA and the Distribution of Gas Ordinance, while preserving Petronas's strategic role at the national level.
Among the matters in the joint statement is the understanding that all federal and Sarawak state laws related to the distribution of gas within the state must coexist and be respected by all parties conducting such activities in Sarawak, including Petronas and Petros.
Petronas will continue to perform its functions, activities, responsibilities and obligations as mandated under the PDA and its associated regulations.
Meanwhile, no Sarawak state law shall affect any agreements or arrangements between Petronas and its subsidiaries with third parties, including Petros, in relation to Petronas's activities in the state.
Abang Johari said that with Sarawak's legislative and executive authority over gas distribution now affirmed, the state government would ensure regulatory clarity and stability to foster industry growth.
'Sarawak will implement its plans to increase gas production within its territory, sustainable utilisation of gas by industries, and for the production of clean energy,' he said.
Such initiatives included the development of carbon capture and storage sites to tap into Sarawak's potential gas reserves off its western coast and to support the planned Kuching Low Carbon Gas Hub.
'All these projects will increase the gross domestic product for Sarawak by RM120 billion and create 185,000 high-income jobs,' he said.