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Licence to supply

Licence to supply gas through pipeline

The main mechanism in ensuring the gas reticulation industry functioning in orderly manner, safe and economic is through the issuing of licence to organisation that supplies gas through pipeline. Section 11(1) indicates that no person shall supply gas through pipelines unless such person is licenced under this act. The Energy Commission is given the power to issue the license after getting the approval from the Minister. A licence may also be suspended or revoked by Energy Commission upon breach of any of the licensing conditions.

Protect Interest of Gas Consumer

To protect the interest of consumers and to assist in its gas supply operations, licensee has been given responsibilities and power pertaining to the construction and manning the pipeline and gas installation. A licensee is responsible under the Section 14 Act 501 to upon being required to supply gas by the owner or occupier of any premises situated within the area of supply of gas. For such services, licensee is allowed to charge a tariff, payment and deposit for the gas supply. Licensee is also allowed to stop supplying the gas if in such danger situations stated in the act such as leakages, fires or pipes explosion or incidents that might jeopardises the safety of consumers and public.

Gas Supply Regulations provides seven (7) types of licence which can be issued under section 11 Act 501, i.e:

  1. Import Into Regasification Terminal Licence
  2. Regasification Licence
  3. Shipping Licence
  4. Transportation Licence
  5. Distribution Licence
  6. Retail Licence
  7. Private Gas Licence

All licence applications shall use JGL Form in online application system (OAS) at oas.st.gov.my

Guidelines on licence application.
gaslicence