Petronas, Malaysia’s state energy company, confirmed discussions are ongoing with Sarawak’s state-run energy operator Petros regarding the role of gas aggregator.
The talks are crucial as Sarawak is home to more than 60% of Malaysia’s gas reserves.
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Negotiations between Petronas and Petros have been at a standstill since last year, sparking concerns about the potential impact on Petronas’ revenues, which contribute to the federal government’s income.
On 12 March, Free Malaysia Today reported that the deadlock persists, with the state government maintaining its stance that all domestic gas users, including LNG plants in Sarawak, must adhere to state laws.
Petronas said, in response to queries from Reuters about the status of the negotiations: “We are still working closely with the federal government, Sarawak state government and Petros on the details of the future arrangement to ensure that the rights and interests of all parties including the end-customers and investors are addressed accordingly.”
In February, Malaysia’s Prime Minister, Anwar Ibrahim, stated that Petronas would continue to honour all domestic and international contracts.
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By GlobalDataPetros, under a 2016 state ordinance, was designated as Sarawak’s gas aggregator, starting 1 March.
However, Law Minister Azalina Othman clarified that Petros’ role would exclude liquefied natural gas distribution.
Petronas, through Malaysia Petroleum Management, said it will increase its gas supply to support Sabah Energy’s industrial and energy needs.
It will additionally supply 104 million standard cubic feet per day (mscf/d), raising the total supply to 370mscf/d.
In February 2025, Petronas reported a 32% drop in profit after tax for financial year 2024 to RM55.1bn ($12.39bn) from RM80.7bn in 2023. The decline was attributed to global volatility and lower oil prices.
