The joint declaration formalizes Petros’ role as Sarawak’s gas aggregator while affirming Petronas’ national mandate — charting a new cooperative energy model for Malaysia.
By PHUBIEYAS AHMAD
PUTRAJAYA, May 21, 2025 — In a historic step toward greater federal-state energy collaboration, Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Tan Sri Abang Johari Tun Openg today signed a Joint Declaration formalising a strategic partnership between Petroliam Nasional Berhad (Petronas) and Petroleum Sarawak Berhad (Petros).
The declaration, issued by the Prime Minister’s Office, outlines a legally coordinated framework that respects both Federal and Sarawak State laws governing the oil and gas industry.
“This partnership opens new doors for a more competitive and sustainable energy sector — not only for Sarawak but for the whole nation,” said Anwar during the signing held at Perdana Putra.
Petros Recognised as Gas Aggregator
Under the agreement, Petros is officially appointed as Sarawak’s sole gas aggregator pursuant to Section 7A of the Distribution of Gas Ordinance (DGO) 2016, with effect from March 1, 2025. This means Petros now holds exclusive authority over the marketing, distribution, and supply of gas to consumers within the state.
The declaration specifies that:
- All parties operating in Sarawak — including Petronas — must respect this appointment.
- Existing and future gas supply agreements involving Sarawak consumers must reflect Petros’ central role.
- Agreements between Petronas (or its subsidiaries) and foreign parties for LNG exports will remain unaffected.
Petronas Retains National Mandate
The declaration also affirms that Petronas will continue its national functions and responsibilities under the Petroleum Development Act 1974 (PDA 1974). This includes upstream operations, LNG exports, and other duties consistent with its federal mandate.
“All relevant Federal and Sarawak State laws relating to gas distribution shall coexist and be respected,” the statement reads, underscoring the legal balance in place.
New Era of Joint Energy Projects
The declaration sets the stage for enhanced cooperation between Petronas and Petros, including:
- Implementation of Sarawak’s Gas Roadmap with a 1.2 billion standard cubic feet per day (Bscf/d) target
- Collaborative projects in green energy, hydrogen, and power generation
- Partnerships involving international investors, with Petronas agreeing to cooperate with Petros in future Sarawak-based projects
All future collaborations will be subject to technical and commercial viability to ensure sustainable outcomes.
Strategic Implications
This joint declaration marks a turning point in Malaysia’s approach to managing its natural resources — aligning with both Sarawak’s aspiration to become an ASEAN energy hub and Putrajaya’s commitment to equitable federalism.
“Our shared aspiration, beyond strengthening Petronas, is to make Sarawak a launching hub for ASEAN. This is a realistic approach that will yield meaningful results,” said Premier Abang Johari.
With the declaration now signed, Malaysia is moving toward a new federal–state energy model, one that promises greater local empowerment, clear legal coordination, and a future-focused green agenda.
- TNS News