KUCHING (Nov 21): It is prudent to appoint Petroleum Sarawak Berhad (Petros) as the gas aggregator for the state, said Safiee Ahmad (GPS-Daro).
He said as a wholly owned entity of the Sarawak government, Petros possessed unparalleled experience and expertise in gas distribution.
“Entrusting them with the role of gas aggregator ensures a seamless transition, leveraging their knowledge to optimise gas supply chains.
“This strategic move not only upholds our commitment to effective governance but also bolsters Sarawak’s standing in the energy sector,” he said when debating the Distribution of Gas (Amendment) Bill, 2023 at the State Legislative Assembly (DUN) Sitting here today.
He pointed out that by introducing a gas aggregator in Sarawak, this would be a strategic move that will foster economic growth and generate new revenue streams.
“This innovative approach will streamline gas supply mechanisms, optimise market dynamics and contribute significantly to the economic prosperity of the region.
“A gas aggregator can effectively and efficiently manage and determine gas production, allocations for the industries or power generation and the gas price in Sarawak,” he said, noting that at present, Petronas purports as the gas aggregator in Sarawak.
He told the august House that with a state-appointed gas aggregator, the state would be able to attract more investors and industry players with more reasonable and affordable prices of the natural gas; and be able to promote new gas discoveries, exploration and production to prioritise gas supply in the best interests of Sarawak.
”The gas aggregator can negotiate bulk purchasing agreements with suppliers, allowing them to obtain gas at a lower cost per unit. This cost efficiency can be passed on the customers, making the aggregator’s services more attractive and transparent in terms of pricing;
”They can also optimise the supply chain by efficiently sourcing gas from various suppliers and distributing it to end-users. This can result in a more reliable and resilient supply chain, reducing the risk of disruptions and increase Sarawakian and Sarawak companies’ participation in the natural gas value chain,” he said.
He also said that the gas aggregator may have access to a wide network of suppliers and customers, providing them with a broader market reach.
“This can be advantageous in terms of expanding the customer base and securing a diverse range of supply sources,” he added.
Safiee said the passage of the Bill marked a crucial stride towards Sarawak’s economic empowerment.
“By surpassing 20 per cent in domestic gas utilisation, we align with the Post Covid-19 Development Strategy (PCDS) 2030 goals, fostering energy self-reliance.
“Furthermore, this legislation propels Sarawak’s socio-economic development, generating skilled jobs and expanding opportunities for our people,” he said.
He added that collaborating with academic institutions to craft tailor-made syllabi ensures that Sarawakians are equipped for the workforce, fulfilling the aspirations of PCDS 2030 to elevate household incomes.
He said more importantly, this Bill safeguards upstream activities, assuring continuity without adverse effects on existing arrangements under Production Sharing Contractors (PSC).
“Our commitment to sustainability is unwavering, and we will collaborate with all stakeholders, including Petronas, to secure the enduring supply of gas for Sarawak.
“With that being said, let us unite in endorsing this transformative legislation for the prosperity and well-being of our beloved state,” said Safiee.