Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan flanked by Petroliam Nasional Berhad (Petronas) president and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin (right) and Petroliam Sarawak Berhad (Petros) chairman Tan Sri Datuk Amar Hamid Bugo witnesses the signing of the Memorandum of Understanding (MoU) documents by Datuk Sauu Kakok (seated left) representing Petros and Ir. Mohamed Firouz Asnan representing Petronas. Photo: Ghazali Bujang.

KUCHING: There will be a changing of the guard in terms of gas distribution in Sarawak.

State oil and gas company Petroliam Sarawak Berhad (Petros) has just been empowered with the responsibility.

Chief Minister Datuk Patinggi Abang Johari Tun Openg said, from Jan 1 this year, Sarawak had full control and authority over from Petroliam Nasional Berhad (Petronas) the supply, sales and distribution of natural gas.

He added that the empowerment of Petros realised the full intent of the state’s Distribution of Gas Ordinance 2016.

“Petros now is the single entity to supply, sell and deliver domestic gas to Sarawak homes, businesses and industries.

“With this, we can be a preferred investment destination and leapfrog our economic development towards a high-income economy by 2030,” he said.

Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan flanked by Petroliam Nasional Berhad (Petronas) president and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin (right) and Petroliam Sarawak Berhad (Petros) chairman Tan Sri Datuk Amar Hamid Bugo witnesses the signing of the Memorandum of Understanding (MoU) documents by Datuk Sauu Kakok (seated left) representing Petros and Ir. Mohamed Firouz Asnan representing Petronas. Photo: Ghazali Bujang.

His text of speech was read by Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan at the Sarawak Domestic Gas signing ceremony at a hotel here, yesterday.

He said, at the moment Sarawak held 54 per cent of total national gas reserves, while amassing 29 per cent of total national oil reserves.

“However, most of the oil and gas resources are exported as crude oil and Liquefied Natural Gas (LNG), with very little downstream value adding activities. This is not sustainable in the long run,” he said.

Abang Johari hoped that with the new arrangement, Sarawak could leverage on its oil and gas resources to boost the economy and at the same time, retain 40 to 50 per cent of all new gas discoveries in Sarawak.

“Gas that is being produced in Sarawak should be used to power our plants and feed our petrochemical facilities. Natural gas as a cleaner burning fossil fuel, can also improve efficiency of many industries.

“With this latest development, Sarawak can now attract more investments in oil and gas downstream industries by making available more gas as feedstock, as well as other high value industries,” he said.