Petronas, Petros Seek Agreement on Gas Aggregator Role

Petronas, Malaysia's state energy company, is engaged in ongoing discussions with Sarawak's Petros regarding the latter's role as the state’s gas aggregator, with negotiations having stalled since last year. Sarawak, which holds over 60% of Malaysia’s gas reserves, has specific state laws that all domestic gas users, including LNG plants, must follow, complicating the negotiations. Officials emphasize the importance of finalizing a commercial collaboration between Petronas and Petros to effectively implement the Sarawak Gas Roadmap, which aims to enhance electricity supply and develop a gas pipeline network across the state. Both Petronas and Sarawak's government are committed to addressing the rights and interests of all parties involved in order to secure a favorable investment climate. Despite the deadlock, Petronas has reiterated its commitment to upholding all domestic and international contracts and working with the federal and state governments on future arrangements. Recent statements suggest that a successful collaboration could significantly contribute to Sarawak's economic development and Malaysia's overall growth.