by TMR / pic courtesy of PetDag
PETRONAS Dagangan Bhd (PetDag) signed a Heads of Agreement with Petroleum Sarawak Bhd (Petros) on Sunday to mark the strategic partnership between both parties in the liquefied petroleum gas (LPG) business in Sarawak.
The partnership includes the divestment of PetDag’s LPG business in Sarawak to PETROSNiaga Sdn Bhd (PNiaga), a wholly owned subsidiary of Petros, and a subscription of shares in PNiaga by PetDag.
According to a statement by PetDag, the partnership is a strategic move to combine the strengths, experience and competencies of both oil and gas companies to maximise value for its customers in Sarawak.
As a result, Gas Petronas will gradually transition to Petros LPG gas-filled cylinders, fulfilling the Sarawak government’s aspiration for statewide coverage of Petros LPG and realising the intent of the state’s Distribution of Gas Ordinance 2016.
The agreement was signed by PetDag’s MD and CEO Azrul Osman Rani, PNiaga’s director Janin Girie and Petros group CEO Datuk Sauu Kakok.
Also present as witnesses were Petroliam Nasional Bhd’s downstream marketing VP Ahmad Adly Alias and Petros’ chairman Tan Sri Datuk Amar Dr Hamid Bugo.
“This signing ceremony marks the beginning of a long-term partnership between both companies to jointly contribute to Sarawak’s development.
“Through this strategic partnership, PetDag and Petros will collaboratively market LPG products in the state, leveraging both companies’ expertise including PetDag’s integrated LPG supply chain network and 30 years of experience,” Ahmad Adly said during the signing ceremony.
“Today’s partnership for Petros’ LPG strategically supports the state’s aspiration to ensure equitable access to an essential everyday fuel for Sarawakians, securing the state’s oil and gas resources for sustainable domestic supply.
“We remain steadfast in collaborating with our industry partners and state counterparts to deliver energy into Sarawak homes, businesses and industries,” said Hamid.
Petros’ LPG entered the domestic market on Aug 4, 2021. Its LPG gas-filled cylinders are currently available through PNiaga dealers in the first serve areas of Kuching (Petrajaya, Matang, BDC and Tabuan), Padawan and Bau, growing statewide in 2022.
With this partnership, both PetDag and Petros will facilitate a seamless transition to ensure continuous supply of LPG to customers in Sarawak.