GAS DISTRIBUTION IN SARAWAK
KUCHING: Companies or persons involved in the O&G industry must have the necessary licences, leases and approvals required by the Distribution of Gas Ordinance 2016 (DGO 2016) which will be fully enforced in Sarawak from Jan 1 next year.
As stipulated in Part 3 Section 7 of the DGO 2016, valid licences will be required to carry out seven activities including the import and retail of gas, the Utilities Ministry said in a media release yesterday.
For import of any gas for regasification, processing, treatment, separation, ulitisation or distribution in Sarawak the licence fee per year is fixed at RM0.0001 per Million Thermal Unit (MMBTU); regasification of gas (RM0.001 per Million British Thermal Unit (MMBTU)); treatment, and separation or processing of gas (RM0.001 per Million British Thermal Unit (MMBTU) and transportation of gas (RM0.005 per MMBTU).
For supply of gas, the ministry said the fee has been fixed at RM0.001 per MMBTU for natural gas and liquefied natural gas and RM600 per year for liquefied petroleum gas.
As for retail of gas, the fee is RM25 a year, the ministry added.
Any activities involving building, managing or maintaining of gas pipeline or other apparatus or equipment or mechanism for the distribution of gas (such as laundrette, restaurants and hotels), applicants are required to obtain an Approval To Install (ATI) and Approval To Operate (ATO) as well as a gas licence.
The ministry said applications for the ATI, ATO and licence should be submitted to the Office of the Director of Gas Distribution at the Ministry of Utilities Sarawak.
All relevant forms for applications can be downloaded from the ministry’s official website at www.mou.gov.my, it added.
The ministry said applicants are also required to have a valid licence issued under the Ordinance to carry out the gas distribution activities in Sarawak even though they may have permits or licences issued by any other government agencies.
The ministry warned that penalties would be imposed for non-compliance of the ordinance.
