Third Party Access System

Why is the TPA system introduced?

(a) To ensure security of supply
The recent reduction of domestic gas production requires the importation of gas for security and sustainability of gas supply to meet the nation’s increasing demand. Thus, a platform where multiple parties are involved in each stage of the gas value chain in Malaysia needs to be established and such platform must:

  • secure and enhance effective competition between the relevant parties within the gas value chain;
  • be non-discriminatory in nature as between the relevant parties within the gas value chain;
  • ensure the efficient and economic operation of the relevant gas facilities within the gas value chain; and
  • enable the efficient discharge of the relevant parties’ obligations.

(b) To create a platform for healthy competition
The TPA system will ensure the access and utilization of gas facilities by all parties on equal terms and conditions for equal utilization. This would in turn ensure the existence of healthy competition in the gas market by creating a level playing field amongst the players, which will, at the end of the day, benefit the consumers in the form of competitive gas prices.

(c) To provide room for growth of the Malaysian gas industry
The TPA system will provide an opportunity for new players to participate in the Malaysian gas market as gas suppliers by utilizing gas facilities to deliver gas to consumers.

The successful implementation of the TPA system will also provide sustainable gas supply and competitive gas prices, and subsequently attract new investment intoMalaysia especially in the manufacturing sector.