It’s a legitimate demand, not blackmail, Sarawak minister tells Zaid

 

Sarawak utility and telecommunication minister Julaihi Narawi said investors are looking elsewhere as there is no gas available for them. (Bernama pic)

PETALING JAYA: 

A Sarawak minister has dismissed former law minister Zaid Ibrahim’s response to an assemblyman’s warning that failure to respect the state’s laws could sever its relationship with the unity government.

State utility and telecommunication minister Julaihi Narawi said the remarks made by Stakan assemblyman Hamzah Brahim in the Sarawak assembly were not a threat or blackmail.

“It is a legitimate demand grounded in legal rights,” he was quoted as saying by The Borneo Post.

Debating the state budget for 2025, Hamzah reportedly warned Putrajaya not to allow Petronas’s “pride and greed” to “contribute to the potential downfall of the Madani government”.

He said Petronas was dishonouring, belittling and disrespecting Sarawak’s state laws by delaying the finalisation of a gas distribution agreement which would see Petroleum Sarawak Berhad (Petros) officially recognised as the state’s sole gas aggregator.

Zaid expressed shock at the Gabungan Parti Sarawak assemblyman’s “brutal chastisement” of Petronas, saying Malaysians were not accustomed to blackmail and preferred holding negotiations.

Julaihi pointed out that Sarawak produced more than 60% of Malaysia’s natural gases, 94% of which Petronas uses to convert into liquefied natural gas to be exported.

“However, all the gas produced offshore Peninsular Malaysia are retained for use in the states of Malaya, to support industries and to be sold for power generation by independent power producers at subsidised rates.

“In stark contrast, only 6% of Sarawak’s natural gas is allocated for local industries and power generation, with prices dictated by Petronas. Foreign investors who wish to set up industries in Sarawak were repeatedly told that there is no gas available for them.

“Consequently, these investors choose other destinations to invest in, depriving Sarawak of crucial economic opportunities. Petronas’s small gas allocation for use in Sarawak does not support industrial development here,” he said.

He said this was why the state government appointed Petros as Sarawak’s sole gas aggregator.

Julaihi reiterated that Sarawak was merely defending its rights and that other parties must respect this, including Petronas and “biased individuals”.

“I would like to reiterate that the appointment of Petros as the sole gas aggregator is final and non-negotiable. This means that there is no other gas aggregator in Sarawak except Petros,” he said.

In July, Sarawak announced its intention for Petros to take over the buying and selling of gas in the state and set a three-month deadline for Petronas to resolve all distribution issues with the state-owned oil company.

On Oct 31, Sarawak premier Abang Johari Openg claimed a deal had been concluded, with Petronas agreeing in principle to Petros serving as the sole gas aggregator for Sarawak.

However, Petronas disputed this, saying discussions were ongoing. - FMT