The Court of Appeal overturned a High Court injunction that required Petronas to supply natural gas to Shell MDS Malaysia without compensation. Justice Wong Kian Kheong ruled that Shell MDS failed to establish any breach of their gas supply contract. The appellate judges found Shell MDS could not meet the "unusually strong and clear" evidence standard required for mandatory injunctions. Petronas had complied with all terms of their July 2020 agreement throughout the dispute.
The ruling restored Petronas's right to cease gas supply after losing approximately RM80 million monthly since December 2023. Shell MDS must pay all outstanding amounts from August through October 2024 by the court's deadline. The company had suspended payments due to confusion over receiving invoices from both Petronas and Petroleum Sarawak during their jurisdictional dispute.
The ruling restored Petronas's right to cease gas supply after losing approximately RM80 million monthly since December 2023. Shell MDS must pay all outstanding amounts from August through October 2024 by the court's deadline. The company had suspended payments due to confusion over receiving invoices from both Petronas and Petroleum Sarawak during their jurisdictional dispute.
