Gas distribution, supply players in Sarawak must have state licence, says minister
KUCHING: All entities involved in gas distribution and supply activities in Sarawak must apply for a licence under the state's Distribution of Gas Ordinance, says the state Utility and Telecommunication Minister.
Datuk Seri Julaihi Narawi said this was in line with the joint declaration signed last Wednesday (May 21) by the federal and Sarawak governments, affirming that federal and state laws on gas distribution must be respected by all parties undertaking the business of distributing, supplying or selling gas in Sarawak.
"Failure to comply with licensing requirements is an offence under Section 20 (criminal case) or Section 21A (civil claim) under the Ordinance," he told the Sarawak Legislative Assembly when winding up matters related to his ministry on Monday (May 26).
Julaihi said the joint declaration acknowledged state-owned Petros as the gas aggregator appointed by the Sarawak government and that the appointment must be respected by all persons involved in gas distribution in Sarawak.
Accordingly, he said, all agreements and arrangements relating to the supply and sale of natural gas in Sarawak must align with Petros's role as the gas aggregator.
"All industry players and entities, including PETRONAS, must conduct their business of gas distribution in full compliance with this joint declaration," he said.
Julaihi also said his ministry would ensure that Sarawak's gas resources were managed sustainably to support industrial growth and remain at affordable prices for the benefit of all Sarawakians.
At the same time, he said, his ministry would facilitate collaboration between Petros and PETRONAS.
"In pursuing such collaborations, should PETRONAS, as the national oil company, seek exemption from licensing requirements for activities or projects which do not conflict with the role of Petros as gas aggregator, such applications will be considered in accordance with the law," he said.
Julaihi also said his ministry had issued 14 gas retail licences to upstream industry players and 537 licences to downstream players since 2023.
In addition, he said 10 non-compliance notices were issued to five companies for conducting activities without a licence under Section 7 of the Ordinance.
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