Sarawak To Introduce Licencing Requirement For Gas Distribution

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KUCHING: Sarawak is imposing a condition requiring any gas distribution activities carried out in the state could only be done with a licence issued by the state’s Ministry of Utilities.

The ministry said this requirement would take effect from Jan 1 next year when the regulations under the Distribution of Gas Ordinance 2016 came into full force.

“Applicants should note that they are 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 by any other government agencies,” it said in a statement today.

Following this requirement, a fee of RM0.001 per million British thermal units (MMBtu) will be imposed for the licence to import any gas for regasification, processing, treatment, separation, utilisation or distribution; regasification of gas; and treatment and separation or processing of gas.

A fee of RM0.005 per MMBtu will be required to obtain the licence for the transportation of gas while the fee for building, managing or maintaining gas pipeline or other apparatus or equipment or mechanism for the distribution of gas will be between RM200 and RM600 per year, depending on the class of installation.

For the licence to supply gas, it said a fee of RM0.001 per MMBtu would be imposed for natural gas and liquefied natural gas and RM600 for liquefied petroleum gas.

The licence fee for the retail of gas, meanwhile, is fixed at RM25 per year.