Joint declaration affirms Sarawak's rights in gas distribution, says business leader
Chai describes the agreement as a landmark step that promotes national cohesion through continued collaboration with Petronas.
KUCHING (May 22): The joint declaration on gas distribution signed between Putrajaya and Sarawak affirms Sarawak's rightful role in managing its own resources, said Datuk Jonathan Chai.
The Sarawak Business Federation secretary-general described the agreement as a landmark step that promotes national cohesion through continued collaboration with Petroliam Nasional Berhad (Petronas).
'Even though it's slightly overdue and it does not encompass what we might have expected, I still welcome the joint declaration signed by Prime Minister Datuk Seri Anwar Ibrahim and our Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg,' he told The Borneo Post .
Chai, who is also Associated Chinese Chambers of Commerce and Industry of Sarawak (ACCCIS) secretary-general, was commenting on the declaration, which stated that all relevant federal and state laws governing gas distribution in Sarawak will coexist and be upheld by all involved parties.
He said the formal recognition of Petroleum Sarawak Berhad (Petros) as the state's gas aggregator under the Distribution of Gas Ordinance 2016 is not just a legal milestone but a bold affirmation of Sarawak's growing capacity and autonomy in managing its energy sector.
'For the business community, this translates into increased confidence, clarity and opportunities in gas-related ventures, infrastructure development, and downstream industries,' he added.
Chai emphasised that the coexistence of federal and state laws on gas distribution reflects political maturity and mutual respect – key elements for long-term stability and sustainable economic growth.
According to him, the dual recognition also sets a powerful precedent for how resource-rich states like Sarawak can participate more meaningfully in the national economy while advancing local aspirations.
He said the upcoming collaboration between Petros and Petronas, including plans to supply up to 1.2 billion standard cubic feet of gas per day and joint ventures in green energy and hydrogen, holds great promise.
'It positions Sarawak not only as a major domestic energy hub, but also as a strategic player in the regional and global energy transition,' he said.
With the anticipated increase in revenue, Chai believes Sarawak is entering a new era of economic empowerment.
'It's crucial that this growth benefits not only big corporations, but also SMEs and everyday Sarawakians – especially our youth and rural communities,' he said.
Chai acknowledged that the agreement may not fulfil every expectation, but said the joint declaration is a holistic, realistic, and practical approach to resolving a complex issue rooted in historical and political realities.
'I think it's a win-win situation for both sides, under the circumstances,' he said.
The declaration stated that the parties include Petronas and Petros, with the former continuing its roles and obligations under the Petroleum Development Act 1974 (PDA 1974).
The declaration also stated that parties shall endeavour to continue to work together to detail out the framework for the benefit of the nation, taking into consideration the aspirations of Sarawak.
It also confirmed the appointment of Petros as the gas aggregator for Sarawak. joint declaration Jonathan Chai lead oil and gas Petronas Petros
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