Sarawak's push for greater control over gas resources raises national concerns: Analysts caution it could impact energy security, Petronas’s authority, and federal unity.

KUALA LUMPUR, April 15 — As negotiations continue between Petronas and Sarawak’s state-owned Petros over a new gas governance deal, experts warn of significant implications for Malaysia’s energy sector and national economy.

Former petroleum analyst Jamil Ghani noted that while PM Anwar Ibrahim confirmed existing Petronas contracts remain valid, Sarawak later added conditions that could impact Petronas’s operations and long-term international deals. These changes may require costly adjustments and challenge Petronas’s ability to meet its obligations.

Under the deal, Petronas will supply 1.2 billion cubic feet of gas daily to Sarawak—up from 450 million—to support the Sarawak Gas Roadmap 2030. This may force Petronas to purchase gas from external sources, potentially affecting its financial stability.

Despite tensions, analyst James Chin said a balanced agreement could strengthen federal-state ties and boost investor confidence. However, over 3,000 oil and gas service firms—most reliant on Petronas—could suffer if the national oil giant loses its grip in Sarawak, impacting federal revenue and subsidies.

Sunway University’s Shakila Yacob warned that weakening Petronas’s role could compromise national energy security and leave Malaysia vulnerable to foreign interests, especially amid rising geopolitical tensions in the South China Sea.

Experts urge a careful resolution that balances Sarawak’s autonomy with Malaysia’s long-term stability and sovereignty.