Petronas still in talks with Sarawak about gas aggregator role

Malaysia's state-owned energy company Petronas announced on Saturday that it will continue discussions with multiple stakeholders after a report claiming that negotiations with Petros over the role of gas aggregator had reached a standstill.

Petronas (or Petroliam Nasional) has been installed in negotiations with Petros, Sarawak’s state-run oil and gas company, since last January. The impasse raised concerns over the possible impact on Petronas revenues, which are a major source for income for the federal governments. Sarawak contains more than 60% Malaysia's natural gas reserves.

Free Malaysia Today, an online media outlet, reported on 12 March that negotiations between Petronas & Petros are still at a standstill, as the state government is sticking to their original demands, which include requiring domestic gas users to adhere to state laws, including LNG plants within the state.

Petronas responded to questions about the current status of negotiations by saying that they were still in close contact with the Sarawak State Government, the Federal government and Petros to determine the exact details of the new arrangement. This would ensure the rights and interest of all parties, including end-customers, investors and Petros, are met.

Anwar Ibrahim, the Prime Minister of Malaysia, said last month that Petronas will fulfill all domestic and international contract obligations. Petros will act as Sarawak’s gas aggregater under a state ordinance from 2016 on gas distribution starting March 1. Azalina Othman, the Law Minister confirmed Petros as the state gas distributor. However, she excluded liquefied gas. (Reporting and editing by Jacqueline Wong; Ashley Tang)

(source: Reuters)