KUCHING (May 13): Petroliam Nasional Berhad (Petronas) and Petroleum Sarawak Berhad (Petros) have reached an agreement to sign a Definitive Agreement before July 1, 2024, said Minister of Utility and Telecommunication Dato Sri Julaihi Narawi.

With the signing of the agreement, Julaihi said Petros would be able to conclude the Gas Purchase Agreements (GPAs) with all upstream gas producers and strengthen its role as the sole gas aggregator in Sarawak.

According to him, the signing of the agreement has positioned Petros to be recognised by Petronas for its definitive role in the acquisition of the sale and purchase activities of natural gas in the state.

“With the appointment of Petros as the sole gas aggregator, Petronas shall cease all buying and selling activities of natural gas in Sarawak and transfer their natural gas distribution network and system to Petros.

“For the information of this august House, Petronas has acknowledged Petros’ role as the sole gas aggregator under the Distribution of Gas (Amendment) Ordinance 2023. Both Petros and Petronas have agreed to sign a Definitive Agreement before July 1, 2024.

“This will enable Petros to finalise GPAs with all upstream gas producers, and Gas Sales Agreements (GSA) with all downstream gas buyers or users before July 1, 2024,” he said in his ministerial winding-up speech yesterday.

For future liquefied natural gas (LNG) sales, Julaihi said Petronas would need to sign new contracts with Petros, especially for the LNG supply and delivery activities out of Sarawak.

On the conversion of yellow LPG cylinders, Julaihi said Petros Niaga has converted approximately 520,000 yellow cylinders into its LPG cylinders as of last month.

He said those yellow cylinders were given by users to PetrosNiaga in an exchange process on a one-to-one basis without additional charges.

“As of April 2024, PetrosNiaga has converted approximately 520,000 yellow cylinders from users to Petros LPG cylinders, and the exchange process continues on a one-to-one basis without additional charges. Currently, there are approximately 1.8 million subsidised LPG cylinders in Sarawak.

“Furthermore, to enhance awareness and safety in the use of LPG cylinders, my ministry, together with Petros, has conducted engagement sessions with communities in areas such as Kuching, Sibu, Daro, Mukah, Julau, Pakan and Sebuyau through programmes like Petros Roadshows with RTM,” he said.

Julaihi also informed that his ministry conducted engagement sessions with 23 upstream gas producers and nine downstream gas buyers last month.

“For the information of this august House, my ministry, through the Sarawak government, has conducted engagement sessions with Petros involving 23 upstream gas producers and nine downstream gas buyers in April,” he added.