Wedoany.com Report-Oct 09,  Malaysia’s state-owned energy firm Petronas has inked a gas sales agreement (GSA) for its subsidiary Malaysia Petroleum Management (MPM) to deliver gas to compatriot firm Sabah Electricity Sdn. Bhd. (SESB). The oil and gas giant has also teamed up with energy players from the Association of Southeast Asian Nations (ASEAN) to drive methane emissions reduction efforts in the region.

Under a newly formalized five-year deal, Malaysia’s national oil and gas company will continue supplying 16 million standard cubic feet of gas per day (MMscfd) to SESB for power generation. The agreement, signed on June 30, was recently marked with a formal document exchange ceremony held on September 29, 2024.

The contract is described as a reflection of the partners’ commitment to efficient and responsible energy solutions. Furthermore, gas is expected to play a key role in fueling the domestic economies of the state of Sabah and the federal territory of Labuan.

MPM Senior Vice President Bacho Pilong noted: “This Gas Sales Agreement is a testament to our enduring partnership with SESB and our shared ambition in securing a sustainable energy future for Sabah. PETRONAS remains committed to supporting Sabah’s industrial development by ensuring a stable and sustainable energy supply, which will be vital in driving the state’s growth.”

The agreement fits Petronas’ broader agenda of driving growth through sustainable energy initiatives and its plan to achieve net-zero carbon emissions by 2050. Since liquefied natural gas (LNG) also plays a part in this, Mitsubishi Corporation signed new agreements reaffirming its engagement in two of Malaysia’s LNG plants owned by the energy major in the country’s Sarawak region, MLNG Dua and MLNG Tiga.