The national energy firm says that Sarawak has exceeded its powers by passing laws and asserting rights on all natural gas in the state
1-MIN READ1-MIN ListenReutersPublished: 8:32pm, 16 Mar 2026Malaysia’s highest court on Monday allowed national energy firm Petronas to pursue a legal bid to challenge several laws passed by the state of Sarawak, amid a protracted dispute over gas distribution rights.Sarawak, on Borneo island, is home to more than 60 per cent of Malaysia’s gas reserves and has long sought greater control over its natural resources.
After two years of stalled talks, Petronas filed a motion at the Federal Court in January seeking clarity on the legal and regulatory framework governing its operations in Sarawak.
Sarawak filed a competing claim last month, challenging three federal laws governing petroleum.
