Malaysia legislation

Section 5

of GAS SUPPLY (AMENDMENT) ACT 2016

Section 5

Section 2 of the principal Act is amended—

(a)

in the English language text, in the definition of “supply of gas”, by substituting for the full stop at the end of the paragraph a semicolon;

(b)

by inserting after the definition of “supply of gas” the following definition:

‘ “third party access” means access to the regasification terminal, transmission pipeline and distribution pipeline by a person other than the owner or operator of such facilities for purposes of delivery of gas to the consumers;’;

(c)

in the definition of “danger”, by substituting for the words

“installation resulting from transmission, distribution or utilization of gas” the words “installation resulting from distribution, retail or use of gas”;

(d)

by inserting after the definition of “piping system” the following definition:

‘ “prescribed” means prescribed by regulations made under this Act;’;

(e)

by substituting for the definition of “gas” the following definition:

‘ “gas” means natural gas, liquefied natural gas or liquefied petroleum gas;’;

(f)

by inserting after the definition of “Minister” the following definition:

‘ “natural gas” means hydrocarbon gas mixture consisting primarily of methane;’;

Gas Supply (Amendment)

(g)

by inserting after the definition of “licensee” the following definition:

‘ “liquefied natural gas” means natural gas in its liquefied state;’;

(h)

by inserting after the definition of “liquefied natural gas carrier” the following definition:

‘ “liquefied petroleum gas” means a mixture of hydrocarbon gases primarily propane and butane at various proportions and stored in liquid form;’;

(i)

by substituting for the definition of “area of supply” the following definition:

‘ “area of supply” means the area within which a person is licensed to regasify, ship, transport, distribute, retail or use gas;’;

(j)

by inserting after the definition of “District Land

Administrator” the following definition:

‘ “equipment” includes a valve, filter, meter, pressure regulator or any other functioning item used in a gas system;’;

(k)

by inserting after the definition of “equipment” the following definition:

‘ “facility” means—

(a)

in the case of a regasification licensee, a facility including the related pipeline and installation located onshore or in Malaysian territorial waters which is used to receive, store or regasify liquefied natural gas which are designated as such by the regasification licensee with the approval of the Commission;

(b)

in the case of a transportation licensee, the transmission pipelines together with the related installation used for the transportation of gas which are designated as such by the transportation licensee with the approval of the Commission;

(c)

in the case of a distribution licensee, the distribution pipelines together with the related installation used for the distribution of gas from the last flange of city gate station and which are designated as such by the distribution licensee with the approval of the Commission;’;

(l)

in the definition of “safety”, by inserting after the word

“property” the words “in respect of distribution pipelines or piping system”;

(m)

by inserting after the definition of “Chairman” the following definition:

‘ “Chief Executive Officer” means the Chief Executive

Officer of the Commission;’;

(n)

by inserting after the definition of “private gas licensee”

the following definition:

‘ “prohibition” means any prohibition under

Part VIa of this Act;’;

(o)

by inserting after the definition of “gas delivery system”

the following definition:

‘ “gas processing plant” means a facility to process natural gas in order to meet gas specifications to be used in or delivered through the gas delivery system;’;

(p)

by inserting after the definition of “import into regasification terminal licensee” the following definition:

‘ “infringement” means an infringement of any prohibition under section 28c or 28g;’;

(q)

by inserting after the definition of “liquefied natural gas”

the following definition:

‘ “liquefied natural gas carrier” means a tank ship designed for transporting liquefied natural gas;’;

Gas Supply (Amendment)

(r)

by substituting for the definition of “supply of gas” the following definition:

‘ “supply of gas” means the delivery of gas to the premises of a consumer of a retail licensee;’;

(s)

by inserting after the definition of “prescribed” the following definition:

‘ “private gas licensee” means a person licensed under section 11 to use gas through a piping system—

(a)

from a storage tank or cylinder on his own property or premises or the property or premises of the owner or occupier; or

(b)

from gas delivered through a distribution pipeline, but does not include a person obtaining the supply of gas from a retail licensee;’;

(t)

by inserting after the definition of “distribution” the following definition:

‘ “distribution licensee” means a person licensed under section 11 to distribute gas;’;

(u)

by inserting after the definition of “transportation” the following definition:

‘ “transportation licensee” means a person licensed under section 11 to transport gas;

(v)

by inserting after the definition of “regasification” the following definition:

‘ “regasification licensee” means a person licensed under section 11 to regasify gas;’;

(w)

by inserting after the definition of “import into regasification terminal” the following definition:

‘ “import into regasification terminal licensee”

means a person licensed under section 11 to import gas into regasification terminal;’;

(x)

by inserting after the definition of “shipping” the following definition:

‘ “shipping licensee” means a person licensed under section 11 to ship gas;’;

(y)

by inserting after the definition of “retail” the following definition:

‘ “retail licensee” means a person licensed under section 11 to retail gas;’;

(z)

by inserting after the definition of “dishonestly” the following definition:

‘ “distribution” means the activity carried out by a distribution licensee to operate and maintain the distribution pipeline to deliver gas through the distribution pipeline;’;

(aa) by inserting after the definition of “transportation pipeline”

the following definition:

‘ “transportation” means the activity carried out by a transportation licensee for the delivery of gas through the transmission pipeline under an arrangement with a shipping licensee;’;

(ab) by inserting after the definition of “prohibition” the following definition:

‘ “regasification” means the activity of operating and maintaining a regasification terminal to regasify the liquefied natural gas into natural gas carried out by the regasification licensee at the regasification terminal and includes receiving, storing and after the regasification, delivering the gas through the regasification terminal pipeline;’;

(ac) by substituting for the definition of “consumer” the following definition:

‘ “consumer” means any direct or indirect user of gas, facilities or services provided by a licensee in the course of business, and includes another licensee that uses the gas, facilities or services thus provided as an input to its own business including as a shipping, retail or private gas licensee, a consumer whose premises receive gas through a transmission or distribution pipeline or a consumer of a retail licensee;’;

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(ad) by inserting after the definition of “transhipment” the following definition:

‘ “use of gas” means the activity of using gas as a private gas licensee.’.

(ae) by inserting after the definition of “gas processing plant”

the following definition:

‘ “import into regasification terminal” means the activity of bringing or causing to be brought liquefied natural gas into or within Malaysia by any means other than by transhipment;’;

(af) by inserting after the definition of “safety” the following definition:

‘ “shipping” means the activity of a shipping licensee making an arrangement with a regasification, transportation or distribution licensee for gas to be processed or delivered through a regasification terminal, transmission pipeline or distribution pipeline to consumers’ premises;’;

(ag) by substituting for the definition of “installation” the following definition:

‘ “installation” means all parts of those physical facilities involved in regasification, transportation, distribution, retail or use of gas including equipment, appliance, pump, vaporizer, compressor, any appurtenance attached to pipelines or piping system and any other assembly;’;

(ah) by inserting after the definition of “gas” the following definition:

‘ “gas appliance” means an appliance designed for use or to be used by a consumer of gas for heating, burning, motive power or other purposes for which gas can be used and includes a gas appliance regulator;’;

(ai) by inserting after the definition of “reserved land” the following definition:

‘ “retail” means the activity of sale or use of gas through the retail licensee’s piping system to consumers’

premises where the gas is either—

(a)

received from a storage tank or cylinder on the retail licensee’s own property or premises or on the property or premises of the owner or occupier; or

(b)

received through distribution pipelines;’;

(aj) by inserting after the definition of “transportation licensee”

the following definition:

‘ “transhipment”, in relation to liquefied natural gas, means to bring or cause to be brought into or stored in a regasification terminal in Malaysia the liquefied natural gas by any means solely for the purpose of taking it out of Malaysia by any means except through pipeline;’;

(ak) by inserting after the definition of “gas appliance” the following definition:

‘ “gas delivery system” means the physical delivery of gas from the connection flange of the loading arm at the regasification terminal or the last flange of the gas processing plant or the last flange of the onshore gas terminal to the transmission pipeline, distribution pipeline and piping system;’;

(al) by inserting after the definition of “pipelines” the following definition:

‘ “piping system” means all parts of those physical facilities including installations, through which gas moves, from the last flange of a regulating or metering station connected to the distribution pipeline or from the filling connection of a storage tank or cylinder for purposes of reticulation or delivery in respect of retail or use of gas through a piping system to any gas appliance in any premises;’;

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(am) by inserting after the definition of “Chief Executive

Officer” the following definition:

‘ “city gate station” means a station with gas measurement and pressure regulating devices where gas is received directly from the transmission pipeline and subsequently delivered through the distribution pipeline for the delivery of gas to the consumer;’;

(an) in the definition of “pipelines”, by substituting for the words “through which gas moves in transportation”

the words “including installations, through which gas moves for purpose of regasification, transportation or distribution of gas”;

(ao) by inserting after the definition of “distribution licensee”

the following definition:

‘ “distribution pipeline” means those parts of the gas pipeline including installations connected downstream of the last flange of a city gate station to the last flange of a regulating or metering station at the premises of consumers or a retail licensee;’;

(ap) by inserting after the definition of “third party access”

the following definition:

‘ “transmission pipeline” includes installations and pipelines transporting gas either from—

(a)

the last flange of the gas processing plant;

(b)

the last flange of the onshore gas terminal;

(c)

the tie-in point of the regasification terminal; or

(d)

the international border, to the last flange of the city gate station or the last flange of a regulating or metering station;’;

(aq) in the national language text, in the definition of “tanah rizab”, by substituting for the full stop at the end of the paragraph a semicolon;

(ar) by inserting after the definition of “natural gas” the following definition:

‘ “onshore gas terminal” means a facility to receive natural gas from offshore and delivered to the transmission pipelines;’; and

(as) by inserting after the definition of “piping system” the following definition:

‘ “regasification terminal” means a facility located onshore or in Malaysia waters which is used to regasify or store liquefied natural gas which is received from a liquefied natural gas carrier;’.

Substitution of section 4