Julaihi: Sarawak not seeking to take over PETRONAS’ role

SARAWAK is not seeking to take over PETRONAS’ role but is asserting its rights over gas distribution and the utilisation of its natural gas resources.

Utility and Telecommunication Minister Datuk Seri Julaihi Narawi said the state’s position has been misrepresented in media reports, particularly concerning its gas distribution rights.

He said Sarawak intends to utilise part of its gas resources to implement the Sarawak Gas Roadmap (SGR) and strengthen its energy security.

“Contrary to what has been constantly portrayed in the media, Sarawak’s position is not about taking over PETRONAS’ role, but about Sarawak’s rights over the distribution of gas.

“Our intention is to ensure that Sarawak can capture greater value from its gas resources and attract new investments to contribute meaningfully to Sarawak’s development,” he said.

Julaihi said this during his ministerial winding-up speech at the State Legislative Assembly (DUN) sitting here today (Oct 19).

He stressed that Sarawak remains committed to working with the federal government and PETRONAS to support Malaysia’s economic growth and broader energy needs.

He said negotiations between the Sarawak government, federal government and PETRONAS are ongoing to reach a mutually agreed commercial resolution.

Julaihi said Sarawak possesses Malaysia’s largest natural gas reserves, estimated at between 43 trillion and 46 trillion standard cubic feet, or about 60 per cent of the country’s total reserves.

He said the appointment of Petroleum Sarawak Berhad (PETROS) as the state’s sole gas aggregator strengthens Sarawak’s authority over gas procurement, supply, distribution and sales.

Under the SGR, Sarawak aims to increase domestic gas utilisation to at least 30 per cent by 2030, focusing on four strategic hubs in Miri, Bintulu, Samalaju and Kuching.

The roadmap projects gas demand of 1.2 billion standard cubic feet per day, supported by infrastructure development and new investments.

Among the major projects is the 500-megawatt combined-cycle gas turbine plant in Miri, which is 63 per cent complete and expected to begin operations by late 2027.

Meanwhile, the 65-kilometre Kidurong-Samalaju gas pipeline is 96 per cent complete and targeted for completion by the end of this year.

Other initiatives include the RM100 million Gas to Bintulu expansion, which could benefit more than 120,000 households by 2030.

Julaihi said domestic gas utilisation has increased from six per cent to 7.1 per cent following the full operation of Sarawak PETCHEM’s methanol plant in Bintulu in late 2025.

The plant has also created more than 1,000 jobs, mostly for Sarawakians.