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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 two (2) types of licence which can be issued under the Section 11 Act 501, i.e:.

  1. Private Gas License to licence those supplying and using gas through a gas pipeline on its own property or premises
  2. Gas Utility License to licence those supplying gas through a gas pipeline to other parties other than Private Gas Licence. For those who get supply of gas from gas utility licence, they do not require to get a private gas licence.

Approval Criteria for Application of Private Gas Licence.

  1. Applicant fill form JG 11 and submit a complete supporting document such as:
    (a) Copy of Approval To Install (ATI)
    (b) Copy of Approval To Operate (ATO)
  2. Owner or occupier in commercial complex should submit folllowing documents:
    (a) Name of competent person / appointed contractor.
    (b) Name of responsible person at premises.
    (c) Safety procedure for operation, maintenance and repair of gas installation.
    (d) Periodic maintenance of gas installation.
    (e) The arrangement of emergency respond in the event of leak, fire or explosion in gas installation.
    (f) Written agreement with registered gas contractor or gas supplier which possess competent person for periodic maintenance
    and emergency repair.
  3. Fee for Private Gas Licence under section 9, Gas Supply Regulation 1997.

Approval Criteria for Application of Gas Utility Licence

  1. Applicant fill form JG 10 and submit a complete supporting document to ST.
  2. Company background:-
    a) Registered his business with the Registrar of Companies, SSM.
    b) Experiences in gas field.
  3. Company's financial position:
    a) Suitable paid-up capital
    b) Strong financial and credit facility
    c) Projection on corporate finance
  4. Company background works, organisational structure, competence and expertise.
  5. List of equipment and those facilities needed for activity of supplying gas.
  6. Area to supply gas are suitable and viable.
  7. Company has suitable system and procedure to ensure safe gas supply, continuously and quality.
  8. Reasonable proposal on tariff and caj.