Application of the Law

• Gas Supply (Amendment) Act 2016 will vary from the existing Gas Supply Act 1993 and Gas Supply Regulations 1997 (“the Regulations”) as the main gas legislation. Gas Malaysia Distribution Sdn Bhd is granted the distribution license by Suruhanjaya Tenaga to distribute natural gas. Gas Malaysia Distribution Sdn Bhd is also bound by the requirements of the Third Party Access Code for Malaysian Distribution Pipelines (TPA Code) issued by Suruhanjaya Tenaga.
• The gas legislation provides a regulatory framework where both the government and industry players are expected to be responsible in ensuring the economy, quality, efficiency, reliability and safe delivery of natural gas. High standards are set by the Act for appropriate systems and practices to be put in place.
• The Regulations provides a comprehensive set of preventive measures to ensure the safety of the gas pipelines, during installation, commissioning, operation, maintenance, repair, upgrading and removal of the system. Provisions also exist to deal with foreseeable problems such as third party intrusions and tampering with the gas system.
• As a licensed natural gas distributor, we are also governed by the Incentive-Based Regulation (IBR) framework administered by the Suruhanjaya Tenaga. IBR ensures that our tariffs are set based on certain levels of efficiency and performance without compromising the safety and quality of our services. Please visit the Suruhanjaya Tenaga website to find out more.
• The gas legislation does not disregard the general obligations listed under the Occupational Safety and Health Act 1994, which is to provide a safe workplace and work system for all office buildings and construction worksites.
• Likewise, the Department of Occupational Safety and Health continues to issue permits to install and operate gas facilities and infrastructure located within factory premises, in accordance with the provisions of the Factories and Machinery Act 1967.