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Petronas subsidiaries granted leave to challenge RM120mil gas penalties

Kuching High Court allows judicial review of penalties under Sarawak's gas distribution law, though stay not granted

6:28 PM MYT

 

KUALA LUMPUR – The Kuching High Court has granted five subsidiaries of Petroliam Nasional Bhd (Petronas) permission to seek a judicial review over the RM120 million in penalties imposed under Sarawak’s gas distribution law.

Judicial Commissioner Dean Wayne Daly determined that the applicants had presented an arguable case and that the matter should proceed to a full hearing. However, the court did not issue a stay to halt the imposition of the financial penalties, Bernama reported.

The five applicants – Petronas Carigali Sdn Bhd, Malaysia LNG Sdn Bhd, Malaysia LNG Dua Sdn Bhd, Malaysia LNG Tiga Sdn Bhd, and Petronas LNG 9 Sdn Bhd – are seeking to have the financial penalties, issued under Section 7 of the Distribution of Gas Ordinance (DGO) 2016, quashed.

The penalties were imposed for allegedly failing to apply for licences to operate in Sarawak, with eight notices of RM15 million each being issued, totaling RM120 million.

Representing the applicants were lawyers Khoo Guan Huat and Alex Ngu Sze Shae. On the opposing side, State Legal Counsel Datuk Seri JC Fong and Senior Counsel Mohd Adzrul Adzlan from the State Attorney General’s Chambers represented the respondents.

The court has scheduled March 2 for case management. — February 6, 2026

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