Amir (second right) hands over the letter of exemption to Muhammad Abdullah witnessed by Abang Johari (centre). Also seen are Nanta (left) and Deputy Chief Minister Tan Sri Datuk Amar Dr James Jemut Masing. – Photo by Roystein Emmor
KUCHING (Sept 9): Sarawak has achieved another milestone in regaining its oil and gas (O&G) rights as liquefied petroleum gas (LPG) distributors in the State no longer need to apply for a licence from Putrajaya.
Domestic Trade and Consumer Affairs Minister Dato Sri Alexander Nanta Linggi said Distribution of Gas Ordinance (DGO) licence holders in Sarawak are now exempt from the need to obtain permission under the Petroleum Development Act (PDA) 1974 and licence under the Control of Supplies Act (CSA) 1961.
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“Through this exemption, LPG wholesalers and retailers in Sarawak only need to obtain the DGO licence from the State’s Ministry of Utilities, and no longer need to apply from the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP).
“This is to ease the distribution of LPG in Sarawak so as to see a positive economic impact,” he said before Chief Minister Datuk Patinggi Abang Johari Tun Openg witnessed Federal Secretary of Sarawak Datuk Amir Omar handing over the letter of exemption to State Economic Planning Unit director Dr Muhammad Abdullah Zaidel, who represented State Secretary Datuk Amar Jaul Samion during a ceremony today.
With this, Nanta said Sarawak gets to regulate the governance of its downstream gas industry as well as to enhance the ease of doing business.
He said the Federal government has also approved SEDC Energy Sdn Bhd as a privileged oil company in Sarawak to sell its own brand of petroleum products.
According to him, this will enhance competitiveness in the industry and offer quality products to end users.
“SEDC Energy Sdn Bhd, as an investment entity of the Sarawak government, can be regarded as the State government’s further participation in the oil and gas industry,” he said.
Nanta said this would serve as a catalyst to boost the domestic economy in Sarawak as well as to further raise the potential of the petroleum industry and other-related industries.
Amir (second right) presents the letter of approval to Sarawak Economic Development Corporation general manager Abdul Hadi Datuk Abdul Kadir witnessed by Abang Johari (centre). Also seen are Nanta (left) and Deputy Chief Minister Tan Sri Datuk Amar Dr James Jemut Masing. – Photo by Roystein Emmor
Abang Johari said SEDC Energy Sdn Bhd will be another entity to play an important role to regulate the gas and petrochemical industry in the State.
He said the DGO 2016 was approved in the State Legislative Assembly (DUN) on Nov 21, 2016 to establish overall regulation power in Sarawak, from upstream to downstream activities.
He added that the regulation and distribution of LPG in Sarawak can now be effectively done without the need of going through bureaucracy.
“DGO is the ordinance to regulate the distribution of LPG in Sarawak. The Ministry of Utilities Sarawak will make sure that the distribution of LPG will be carried out effectively,” he said.
The chief minister said the Utilities Ministry, under Dato Sri Dr Stephen Rundi Utom, would work on a competitive ecosystem to attract investment while looking after the interests of LPG users.
Abang Johari said the ministry is obligated to ensure the quality of gas and the safe supply of the commodity.
“I want to see active participation in this industry to bring about enhancement of human capital development in Sarawak, and not just the petroleum industry but other complementary industries,” he said.
He pledged that the Sarawak government would continue working closely with KPDNHEP to ensure the exemption will have a positive impact on the State’s economic development.
“Now we can distribute our gas to other parts of Sarawak with the power that we have through the ordinance (DGO),” he added.
Before the exemption, LPG distribution licensing was regulated by KPDNHEP.
Under the DGO, all activities associated with the distribution of gas or within the distribution system for supply and delivery are to be licensed by the State government.