Sarawak Wins Gas Distribution Autonomy: A Major Victory

Sarawak Secures Gas Distribution Autonomy: A Landmark Joint Declaration KUCHING, SARAWAK – In a significant development for Sarawak's energy sector, a joint declaration between the federal and state governments has formally recognized the state's authority over gas distribution. The agreement, announced on May 29, 2025, solidifies Sarawak's control under the Sarawak Gas Distribution Ordinance (DGO) 2016, effectively removing the state from the purview of the 1993 Gas Supply Act. This decision marks a major step toward greater autonomy for Sarawak. Premier Tan Sri Abang Johari Tun Openg emphasized the clarity of this new regulatory certainty, stating, "This recognition means Sarawak is no longer subject to the 1993 Gas Supply Act or conditions under the 1974 Petroleum Development Act." The move is expected to boost investment and sustainable gas utilization within the state. The joint declaration not only affirms Sarawak's legal standing but also acknowledges its executive authority in managing gas distribution. This is a significant victory for Sarawak, ensuring greater control over its natural resources and economic development. The resulting regulatory clarity is expected to attract substantial foreign and local investment in the upstream, midstream, and downstream gas sectors, contributing to economic growth and the production of clean energy in the region.