State government asks for special natural gas quota

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LET’S GET STARTED: Chief Minister Tan Sri Datuk Amar Adenan Satem (left), accompanied by his senior private secretary Datu Mustapa Han, arriving for the second day of the State Legislative Assembly (DUN) sitting. — Photo by Chimon Upon

KUCHING: The state government has officially requested for a special natural gas quota from the federal government and Petronas to meet the demands of Sarawak’s oil and gas industry.

Assistant Minister of Industrial Development (Investment and Promotion) Datuk Julaihi Narawi said this special allocation would enable the state to meet the needs of power generation and downstream activities of its oil and gas industry. .

“The state government acknowledges the need for natural gas in Sarawak and we hope that we will soon receive a positive feedback from the federal government and Petronas on the special quota,” he said in reply to Aidel Lariwoo (BN-Sadong Jaya), who enquired whether Petronas would consider allocating a special natural gas quota for the state at the State Legislative Assembly (DUN) sitting here yesterday.

On whether Sarawak could be given the opportunity to be more directly involved in the state’s oil and gas industry through a 30 per cent or higher equity in Petronas’ mega projects, namely the liquefied natural gas (LNG) Train 9 and first Floating LNG 1 facility upon its completion, Julaihi said the suggestion would be looked into by the state government.

“If this suggestion is considered, then we hope that it can generate revenue and broaden the state’s sources of income in the future,” he remarked.

Meanwhile, Dr Abdul Rahman Ismail (BN-Bukit Kota) asked if the government could propose a revision of the Petroleum Development Act 1974 to increase the state’s royalty from the present five per cent to a figure that is higher and more reasonable. .

“The state government may look into proposing this with the federal government and Petronas to see how this act can be revised,” Julaihi said.

“On the other hand, we are also of the opinion that the federal government and Petronas can also look into providing more development grants to the state government as another alternative to the oil royalty increase,” he suggested.

Julaihi had earlier mentioned that apart from the five per cent royalty given by Petronas to the state government annually, Petronas had also contributed towards the state’s socio-economic development.

“Petronas has made crucial contributions to the state’s economy with the monetisation of hydrocarbon resources as well as invested billions of Ringgit to construct and expand facilities concerning oil and gas in Sarawak such as the Petronas LNG Complex.

“Petronas has also implemented education initiatives in Sarawak,” he added.