KUCHING, May 28 — Sarawak is exempted from certain provisions under the Petroleum Development Act 1974 (PDA 1974) following the signing of the joint declaration between the federal and Sarawak governments on May 21, 2025, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

In his winding-up speech at the Sarawak Legislative Assembly sitting here today, Abang Johari said the joint declaration affirms the recognition of Sarawak’s executive authority over the distribution of gas within its territory and removes any perceived regulatory uncertainty.

"This joint declaration reaffirms that Federal and State laws on distribution of gas shall be respected by all persons undertaking the distribution and supply of gas in Sarawak,” he said.

Abang Johari also pointed out that Sarawak is not subject to certain requirements under the PDA 1974.

"Federal laws like the Gas Supply Act 1993 do not apply to Sarawak and Sarawak is exempted from the requirements imposed by Section 6(1) and (3) of the Petroleum Development Act 1974 to obtain the permission of the Prime Minister to undertake distribution of gas business in Sarawak,” he said.

The Premier extended his appreciation to Prime Minister Dato’ Seri Anwar Ibrahim for his leadership and commitment in resolving issues between Petros and Petronas, saying the joint declaration reflected the federal government’s recognition of Sarawak’s aspirations.

"For the record in this august House, I wish to quote the joint declaration,” said Abang Johari, before reading the full text, which among others confirms the appointment of Petros as the gas aggregator in Sarawak effective March 1, 2025.

Under the declaration, Petros’ appointment under Section 7A of the Distribution of Gas Ordinance (DGO) 2016 is to be respected by all parties undertaking the business of gas marketing, distribution, and supply in the state.

The document also states that Petros and Petronas will cooperate on projects to meet Sarawak’s domestic gas needs, including implementing the 1.2 billion standard cubic feet per day (Bscf/d) plan under the Sarawak Gas Roadmap and exploring green energy, hydrogen, and power generation initiatives.

"All discussions on collaborations must be subject to technical and commercial viability. For the purpose of future projects in the State of Sarawak involving international partners, Petronas shall cooperate with Petros,” the declaration read.

Abang Johari said with Sarawak’s legislative and executive authority over gas distribution confirmed, the state government will ensure regulatory clarity and stability to support industry growth.

"Sarawak will implement plans to increase gas production within its territory, sustainable utilisation of gas by industries, and for the production of clean energy,” he said, adding that this would provide investment opportunities in upstream, midstream and downstream activities.

He said these initiatives include the development of carbon capture and storage (CCS) sites to tap into Sarawak’s potential gas reserves off its western coast and to support the planned Kuching Low Carbon Gas Hub.

"All these projects will increase the GDP for Sarawak by RM120 billion and create 185,000 high-income jobs,” he said.

He also reiterated that Petros, as the state’s gas aggregator and resource manager, will play a central role in expanding gas infrastructure, ensuring adequate supply for industrial and domestic use, and developing CCS sites aligned with the state’s energy agenda. — The Borneo Post