The 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 – are seeking a judicial review on the imposition of penalties totalling RM120 million, The Borneo Post reported.

The companies were fined for allegedly failing to apply for eight licences to operate in Sarawak, as stipulated by the Distribution of Gas Ordinance 2016.

Judicial commissioner Dean Wayne Daly ruled that the five applicants had valid cases and their applications were neither frivolous or vexatious.

He fixed March 2 for pre-trial case management, and ordered the applicants to provide their submissions.

The five subsidiaries were represented by lawyers Khoo Guan Huat and Alex Ngu, while Sarawak legal counsel JC Fong and state senior counsel Adzrul Adzlan from Sarawak’s Attorney-General’s Chambers represented the respondents.

Fong later clarified that the respondents do not intend to appeal as the court did not grant a stay of proceedings to enforce the penalty of RM120 million imposed on the five companies.

Last month, Khoo and Ngu argued that the Distribution of Gas Ordinance 2016 did not apply to the subsidiaries’ operations, and that the financial penalty was ultra vires the ordinance.

They also argued that the Sarawak state legislature had exceeded the powers conferred by the Borneo State (Legislative Powers) Order 1963 by requiring licences for the treatment, processing, separation, and transportation of gas, as well as the building and maintenance of gas pipelines.