Sarawak Non-LNG Gas Demand To Reach 500 mmscfd By Year-end -- Azalina

KUALA LUMPUR, Nov 10 (Bernama) -- Domestic natural gas demand in Sarawak for the non-liquefied natural gas (LNG) market is projected to rise to 500 million standard cubic feet per day (mmscfd) by year-end.

Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said, said average natural gas demand in Sarawak’s non-LNG market stood at around 400 mmscfd between 2023 and 2024.

She said Petroliam Nasional Bhd (Petronas) remains committed to allocating 1.2 billion standard cubic feet per day (bscfd) to meet domestic market needs in Sarawak by 2030.

“The gas is not sold directly to the Sarawak Government but channelled to downstream industries in the state that have signed Gas Sales Agreements (GSAs) with Petronas under commercial terms and conditions,” she said in a written reply published on Parliament’s website today.

She was responding to Chong Chieng Jen (PH-Stampin), who had asked the ministry to state the volume of natural gas sold by Petronas to Sarawak for 2023, 2024 and 2025.

Replying to a separate question from Datuk Awang Hashim (PN-Pendang) on the status of oil and gas rights negotiations between Petronas and Sarawak, Azalina said the national oil company is currently holding discussions with Petroleum Sarawak Bhd (Petros) to finalise the Joint Declaration signed on May 21, 2025.

“The negotiation process takes time as it must consider commercial principles, mutual interests and industry sustainability. It aims to establish a more strategic, inclusive and equitable cooperation framework for the long term,” she said.

Azalina stressed that Petronas must be allowed to continue performing its roles and responsibilities under the Petroleum Development Act 1974 (Act 144), covering upstream activities and LNG sales to international markets.

“As for Petros, the company has been appointed as the gas aggregator for Sarawak’s domestic market effective 1 March 2025. This appointment will be respected and supported by all industry players involved in gas distribution and supply to domestic consumers,” she said.

Azalina added that all existing and future agreements or contracts involving Petronas or its subsidiaries with third parties for LNG sales, covering every stage from upstream production to export, remain fully protected, unaffected and in force.

“Petronas continues to pursue resolution of these matters through negotiation and collaboration, ensuring the interests of all stakeholders are safeguarded while maintaining stability and sustainability in the national oil and gas industry,” she said.

-- BERNAMA