Julaihi shows his ministerial winding-up speech during a press conference after the sitting. On his right is his deputy Datuk Liwan Lagang.

KUCHING (Dec 2): The Sarawak government, through Petroleum Sarawak Berhad (Petros), is still refining negotiations with Petroliam Nasional Berhad (Petronas) to finalise the commercial agreement by Dec 31 this year.

Utility and Telecommunication Minister Dato Sri Julaihi Narawi said it is hoped the agreement could be finalised for mutual interests, especially in Sarawak’s efforts to implement the Sarawak Gas Roadmap (SGR).

“On May 21, 2025, the Prime Minister and the Premier signed a Joint Declaration stating that all federal and Sarawak laws related to gas distribution must coexist and be respected by all parties, including Petros and Petronas.

“We believe Petronas can play an important role together with Petros in making the SGR a success,” he said in his ministerial winding-up speech.

Julaihi said he found it “strange” that over the past few weeks, Petronas had announced new collaboration agreements with international partners from Italy and France.

“However to this day, they have not shown the same level of priority or determination to finalise the long-pending agreement with Petros, the entity entrusted to represent Sarawak’s interests.

“This situation reflects the Malay proverb, ‘kera di hutan disusukan, anak di rumah kelaparan’, which is akin to prioritising foreign partners while neglecting long-overdue responsibilities toward Sarawak,” he said.

He said Sarawak remains committed to negotiating professionally and collaboratively, but hopes that the spirit of cooperation that has been agreed upon will not remain merely on paper, but be translated into immediate action by all relevant parties.

Meanwhile, Julaihi said the government is expanding access to natural gas across the state through several strategic projects under the SGR, including the upcoming Sarawak Virtual Pipeline System (VPS).

He said the VPS, scheduled to operate by the first quarter of 2026, will transport liquefied natural gas (LNG) from Bintulu to Kuching.

“It is expected to extend gas access to areas outside the main grid, increase domestic gas usage, and support local industrial development.

“Under the roadmap, the 500 megawatt Combined Cycle Gas Turbine (CCGT) in Miri is currently 30 per cent complete and is expected to be commercially operational in the fourth quarter of 2027.

“The Kidurong-Samalaju Gas Pipeline, spanning 65km and supplying 300 million standard cubic feet of gas per day, has reached 91 per cent completion and is scheduled to begin operation in the second quarter of 2026,” he said.

He said the ‘Gas to Bintulu’ pilot project, operational since July this year, supplies piped gas to 40 low-income households in Sungai Plan, Bintulu, marking the first step in bringing local gas directly to communities.

“In Miri, the ‘Gas Direct to Kitchen’ initiative has connected 589 households in Quadruplex Taman Ceria to piped gas, with full completion expected by the fourth quarter of 2027,” said Julaihi.

Julaihi also said the Kuching Low-Carbon Hub will develop a regasification terminal, a low-carbon petrochemical park, gas infrastructure, and a 5,000 megawatt CCGT plant.

“Together, these initiatives aim to increase domestic gas usage from the current seven per cent to at least 30 per cent by 2030, supporting both household energy needs and the state’s industrial growth,” he said.