Will Petronas subsidiaries pay RM120m in Sarawak gas penalties pending review?

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Petronas Subsidiaries Must Pay RM120 Million in Sarawak Gas Penalties Pending Judicial Review

Petronas subsidiaries are required to pay the RM120 million in gas penalties imposed by Sarawak while the judicial review proceedings are ongoing. The State Director of Gas Distribution has the authority to take action to ensure these penalties are settled. Should the Petronas subsidiaries ultimately prevail in their legal challenge, the Sarawak government is obligated to refund the amounts paid.
Payment Obligation During Judicial Review

The High Court has ruled that the five Petronas subsidiaries – Malaysia LNG Sdn Bhd, Malaysia LNG Dua Sdn Bhd, Malaysia LNG Tiga Sdn Bhd, Petronas Carigali Sdn Bhd, and Petronas LNG 9 Sdn Bhd – must pay the RM120 million in penalties. This payment is mandated to occur while the judicial review proceedings are underway, as the court refused to grant a stay on the financial penalties.
Enforcement Powers for State Director

The State Director of Gas Distribution is empowered to take necessary actions to ensure the payment of these penalties. This provision allows the state to actively pursue the collection of the RM120 million while the legal challenge progresses, underscoring the seriousness with which the penalties are being treated by the authorities.
Refund Contingent on Legal Outcome

A critical aspect of the court's decision is the provision for a refund. If the Petronas subsidiaries are successful in their judicial review and the penalties are ultimately quashed, the Sarawak government will be required to reimburse the companies for the penalties that were paid during the pendency of the case.
Judicial Review Proceedings Underway

The judicial review application, which challenges the requirement to comply with Sarawak's Distribution of Gas Ordinance (DGO) 2016 and the imposed penalties, has been granted leave to proceed. The High Court has fixed April 7, 2026, for the mention of the case, allowing for the substantive motion to be fully argued before the court.

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Will Petronas subsidiaries pay RM120m in Sarawak gas penalties pending review?

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