Oil companies say negotiations are still underway with Sarawak regarding the role of gas aggregator

KUALA LUMPUR, Reuters (Reuters) – Malaysia’s national energy company Petronas said on Saturday it would continue to discuss with multiple stakeholders after a report that negotiations on the ongoing role of gasoline aggregator have reached a deadlock.

Petronas or Petroliam nasional has held stalled negotiations with Sarawak state-owned energy company Petros since last year. The deadlock has raised concerns about the potential impact of Petronas’s income, the main source of income for the federal government. Sarawak is home to more than 60% of Malaysia’s natural gas reserves.

Online media free Malaysia reported today on March 12 that negotiations between Petronas and Petros remained at a standstill as the state government insists that all household gas users, including the state’s LNG plants, comply with the initial requirements of state law.

“We are still working closely with the federal government, the Sarawak State Government and Petros to discuss details of future arrangements to ensure the rights and interests of all parties, including the rights and interests of the end customers and investors,” Petronas said.

Last month, Prime Minister Anwar Ibrahim said that under the 2016 State Gas Distribution Ordinance, which began on March 1, 2016, Petros will uphold all its domestic and international contractual obligations, and Petros will serve as a natural gas polymerizer in Sarawak. Law Secretary Azalina Othman confirmed Petros’ role as gas distribution in the state, but ruled out liquefied liquefied natural gas. (Reported by Ashley Tang; Edited by Jacqueline Wong)