Julaihi: Petronas can apply for licensing exemption for projects not in conflict with Petros' gas aggregator role
KUCHING (May 26): Petroliam Nasional Berhad (Petronas) may apply for exemption from licensing requirements for activities or projects that do not conflict with the role of Petroleum Sarawak Berhad (Petros) as gas aggregator, said Datuk Julaihi Narawi.
The Utility and Telecommunication Minister said such applications will be considered in accordance with the law, provided they do not involve the supply, sale, retail, or distribution of gas—sectors under the purview of Petros as sole aggregator.
'The Joint Declaration acknowledges Petros as the gas aggregator appointed by the Sarawak government in the exercise of its executive authority.
'Both the Prime Minister (Datuk Seri Anwar Ibrahim) and the Premier of Sarawak (Datuk Patinggi Tan Sri Abang Johari Tun Openg) have expressly stated that this appointment must be respected by all parties involved in the business of gas distribution in the state,' Julaihi said in his ministerial winding-up speech at the State Legislative Assembly (DUN) here today.
Julaihi said all agreements and arrangements related to the supply and sale of natural gas in Sarawak must align with Petros' role as gas aggregator, as outlined in the Joint Declaration.
He stressed that all industry players, including Petronas, must conduct their gas distribution activities in full compliance with the terms of the declaration.
'Therefore, all parties involved in activities related to the distribution and supply of gas are required to apply for a licence under Section 7 of the Distribution of Gas Ordinance, 2016 (DGO 2016).
'Failure to comply with this licensing requirement constitutes an offence under Section 20 (criminal case) or Section 21A (civil claim) of the Ordinance, which may result in a fine, imprisonment, or both,' said Julaihi.
He stated that since the amendment to the DGO 2016 in 2023, his ministry has implemented several regulatory measures, including the issuance of 14 licences for upstream activities under Section 7(g), 537 licences for downstream industry players, and 10 non-compliance notices to five companies found operating without a licence under Section 7 of the Ordinance.
Julaihi further expressed his confidence that the Joint Declaration will benefit Sarawak and serve national interests by strengthening investor confidence, particularly among international companies in the gas distribution sector.
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