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Sarawak plans to sell LPG, essential items to Kalimantan

KUCHING, Dec 2  -- Sarawak Chief Minister Datuk Patinggi Abang Johari Tun Openg said the state intends to supply liquefied petroleum gas (LPG) to Kalimantan, Indonesia after having successfully supplied its energy there.

He said that the state government had agreed in principle to a request from the Governor of Kalimantan who had written to ask Sarawak to supply LPG and essential food items like sugar and rice to the region.

"Actually there is already a consultation between us and the Consulate General of Indonesia here which will be followed by our formal meeting with the Kalimantan Governor soon," he told reporters after launching Petroleum Sarawak Bhd's (Petros) LPG here, today.

According to him, there were a lot of Petronas LPG cylinder tanks being distributed to homes along the border but there had been no formal arrangement, and as such, the Kalimantan governor had requested to have some form of collaboration on the supply of cooking gas and other essential items.

On the price of Petros LPG, the Chief Minister said it is sold at RM26.60 per 14-kg tank as the government had been heavily subsidising the price.

He said the price in the rural areas might be higher as it was due to transportation cost and the state government would find ways to ensure efficient distribution of LPG to all homes in the state.

In his speech earlier, Abang Johari said Sarawak holds 60 per cent of the nation's petroleum and gas reserves, justifying his reason to form Petros in 2018 to play an active part in the industry development.

He said the state government had awarded two licences to Petros earlier this year for oil and gas exploration, and if these resulted in successful endeavours, would contribute additional income to the state's coffers.

Meanwhile, Petros chairman Tan Sri Hamid Bugo said with the launch Petros LPG today, the state-owned oil and gas company would start supplying LPG to homes, businesses and industries in Sarawak in 2021 starting with Kuching and Samarahan, and extending state-wide in 2022.

"We began on Jan 1, 2020 – as the single entity for the supply, sale and distribution of natural gas to domestic customers in Sarawak, with our ownership and operatorship of Bintulu and Miri Gas Distribution Systems and Sarawak Gas Distribution Sdn Bhd," he said.

-- BERNAMA

 

 

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