Awang Tengah (third left) smiles during a photo-op as Petros chairman Tan Sri Datuk Amar Hamid Bugo (fifth left) and Petronas president and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin (third right) turn the steering valve of a natural gas pipeline model to symoblically officiate the ceremony. – Photo by Chimon Upon
KUCHING: Sarawak missed out many investment opportunities in oil and gas downstream activities in the past prior to gaining full control and authority over the supply, sales and distribution of natural gas within the state effective Jan 1 this year, says Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan.
He pointed out that the missed opportunities were due to the state not being able to secure the supply of gas for investors.
“We had to beg Petronas (Petroliam Nasional Berhad) and even write to the Prime Minister requesting for more quota and ultimately Petronas agreed to give us a quota of about 450 million standard cubic feet per day (mmscfd) of natural gas — of which 250 mmscfd was for power and 200 mmscfd was for industrial purposes.
“However, that is not enough and I’m saying this very loud and clear that there are so many investors who are very keen to invest in Sarawak but they are also confused over which authority they should refer to – the state or Petronas,” he said at the Sarawak Domestic Gas Signing Ceremony between Petros and Petronas at a leading hotel here today.
He said for investors, time is money and because of this uncertainity, it drove many of these investors away.
He described the signing ceremony for the complete transfer of Distribution of Domestic Gas from Petronas to Petroleum Sarawak Berhad (Petros) marked a significant milestone for the state as Petros was now the single entity to supply, sell and deliver domestic gas to Sarawak homes, businesses and industries.
“With this sort of arrangement, I hope that this can give confidence to our investors especially those who are very keen to invest in oil and gas downstream activities.
“Petros must now work hard to ensure that there will always be sufficient supply of gas for industrial, commercial and residential requirements with the support of Petronas,” he said.
Thanking Petronas for their cooperation, he hoped that the state government and the national oil and gas company could continue working together for the betterment of the country.
Earlier in his speech, Awang Tengah also took the opportunity to advise Petronas to follow the state’s law in regards to the state sales tax.
“When in Rome do as the Romans do and now that you are in Sarawak, my advice is you must follow the local law of Sarawak,” he teased.
The state government is currently in a legal battle with Petronas to claim the unpaid sales tax on petroleum products to Sarawak.