KUCHING, Dec 2 — Sarawak Chief Minister Datuk Abang Johari Openg today said the state will supply liquefied petroleum gas (LPG) to West Kalimantan in Indonesia after both sides reached a formal arrangement.
“West Kalimantan Governor Sutarmidji has written a letter to me to supply them with LPG, especially to the Indonesian villages near the border with Sarawak.
“On principle, I agreed because if there is no regulatory procedure for us to sell our LPG in West Kalimantan, I fear that there will be smuggling of LPG into the other side,” he said at the launch of Petroleum Sarawak Berhad’s LPG here.
He said the state government, through its wholly-owned Petroleum Sarawak Berhad (Petros), must make formal arrangements with the West Kalimantan authorities for the supply of LPG.
He said Sarawak, being a gas-producing state, is keen to sell its LPG to its neighbours.
“This is our future plan. We have to go beyond our borders,” he said.
He added that Sarawak is already supplying electricity to West Kalimantan.
He also said the state government is negotiating with the federal government and Petroliam Nasional Berhad (Petronas) for Petros to take an active participation in the exploration of oil and gas since the Oil Mining Ordinance 1958 grants it that authority.
Abang Johari expects oil-and-gas to continue generating revenue for the state from its sales tax on petroleum products exported by the oil companies operating within its territory.
Petros chairman Tan Sri Hamid Bugo said the company will start supplying LPG in the Kuching and Samarahan divisions next year and other parts of the state by 2022.
He said since early this year, Petros has been supplying gas to over 25,000 households through the piped gas grid operated by wholly-owned subsidiary Sarawak Gas Distribution Sdn Bhd, in Miri and Bintulu.
He added over 1,500 commercial businesses and industries are served by the distribution systems in the two towns.