Petronas says still in talks with Sarawak over gas aggregator role

KUALA LUMPUR, March 15 (Reuters) - Malaysia's state energy firm Petronas said on Saturday it is continuing discussions with multiple stakeholders following a report that negotiations over the ongoing gas aggregator role with Petros have reached a deadlock.

Petronas, or Petroliam Nasional, has been engaged in stalled negotiations with Petros, Sarawak's state-run energy firm, since last year. The impasse had raised concerns about the potential impact on Petronas' revenues, a major source of income for the federal government. Sarawak is home to more than 60% of Malaysia's gas reserves.

Online media Free Malaysia Today reported on March 12 that the negotiations between Petronas and Petros were still in a deadlock as the state government was sticking to its original demands of requiring all domestic gas users, including LNG plants in the state, to comply with state laws.

"We are still working closely with the federal government, Sarawak state government and Petros on the details of the future arrangement to ensure that the rights and interests of all parties including the end-customers and investors are addressed accordingly," Petronas said, in response to queries from Reuters about the status of the negotiations.

Last month, Prime Minister Anwar Ibrahim said Petronas would uphold all its domestic and international contractual obligations while Petros would act as Sarawak's gas aggregator under a 2016 state ordinance on gas distribution beginning March 1. Law Minister Azalina Othman confirmed Petros' role as the state's gas distributor, but excluding liquefied natural gas. (Reporting by Ashley Tang; Editing by Jacqueline Wong)