Kuala lumpur: 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, stated that the average natural gas demand in Sarawak’s non-LNG market was around 400 mmscfd between 2023 and 2024.
According to BERNAMA News Agency, Petroliam Nasional Bhd (Petronas) remains committed to allocating 1.2 billion standard cubic feet per day (bscfd) to meet the domestic market needs in Sarawak by 2030. Azalina explained that the gas is not sold directly to the Sarawak Government but is channeled to downstream industries in the state under commercial terms and conditions through Gas Sales Agreements (GSAs) with Petronas.
Responding to Chong Chieng Jen (PH-Stampin), who inquired about the volume of natural gas sold by Petronas to Sarawak for 2023, 2024, and 2025, Azalina provided these insights in a written reply published on Parliament’s website. Furthermore, addressing a separate question from Datuk Awang Hashim (PN-Pendang) regarding the status of oil and gas rights negotiations, she revealed that discussions are ongoing between Petronas and Petroleum Sarawak Bhd (Petros) to finalize the Joint Declaration signed on May 21, 2025.
Azalina emphasized the importance of the negotiation process, which must consider commercial principles, mutual interests, and industry sustainability. The goal is to establish a more strategic, inclusive, and equitable cooperation framework for the long term. She also highlighted Petronas’s role under the Petroleum Development Act 1974 (Act 144), covering upstream activities and LNG sales to international markets.
Azalina noted that Petros has been appointed as the gas aggregator for Sarawak’s domestic market effective March 1, 2025. This appointment is expected to be respected and supported by all industry players involved in gas distribution and supply to domestic consumers. All existing and future agreements or contracts involving Petronas or its subsidiaries for LNG sales, from upstream production to export, remain fully protected and in force.
She concluded by stating that Petronas is committed to resolving 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.