KUALA LUMPUR (Reuters) -Malaysian state energy firm Petronas said on Wednesday that it remains committed to meeting its contractual obligations and maintaining reliable gas supply for buyers following a Court of Appeal ruling that favoured the firm in a dispute with Shell MDS (Malaysia).
Petronas welcomed the court’s decision to overturn a High Court injunction that allowed Shell MDS, a gas-to-liquids unit of oil giant Shell, to halt its monthly gas payments to Petronas from August 2024.
“We are grateful that the Court of Appeal, in its broad grounds of decision, acknowledged that Petronas has been performing its obligations without fail in spite of the challenges it faced,” the company said in an email response to Reuters.
Local media reported on Monday that a three judge panel ruled in an unanimous decision that there was no breach of agreement by Petronas, as it had continued to supply gas to Shell MDS throughout the dispute.
The original High Court injunction was granted last year after Shell MDS started to receive competing invoices of 80 million ringgit each from both Petronas and Petros, a gas aggregator owned by the state of Sarawak.
Shell Malaysia said that Shell MDS respects and will comply with the ruling of the Court of Appeal on the matter.
Petronas has been in dispute with Petros over gas distribution rights in Sarawak since last year, and faces another court case with Petros involving gas rights in the state.
Petronas also said that it welcomed Shell MDS’ announcement that it would comply with the court’s ruling, adding that it hopes all outstanding issues can be resolved in due course.
(Reporting by Ashley Tang; Editing by David Stanway)
