Petronas confirms its gas supply commitments following Malaysian court victory

The Malaysian state-owned energy company Petronas stated on Wednesday that they remain committed to meeting their contractual obligations and maintaining a reliable gas supply for customers following a Court of Appeal decision that favored the firm in a case with Shell MDS Malaysia.

Petronas has welcomed the decision of the High Court to overturn an injunction that would have allowed Shell MDS (a unit of Shell's gas-to liquids division) to stop its monthly payments to Petronas as early as August 2024.

In an email, the company stated that it was "grateful" that the Court of Appeal acknowledged Petronas's ability to perform its obligations despite the challenges that it faced.

Local media reported that on Monday, a three-judge panel unanimously ruled that Petronas had not breached the agreement because it continued to supply Shell MDS with gas throughout the dispute.

Shell MDS received competing invoices for 80 million ringgit from Petronas as well as Petros, an aggregator of gas owned by the state Sarawak.

Shell Malaysia has said that Shell MDS will respect and comply with the Court of Appeal's ruling on this matter.

Petronas and Petros have been battling over the rights to distribute gas in Sarawak for more than a year. They are also involved in a court case involving Petros' gas rights within the state.

Petronas said it also welcomed Shell MDS's announcement that it will comply with the court ruling. It added that it hoped all outstanding issues could be resolved in time. Ashley Tang reported; David Stanway edited.

(source: Reuters)