PETRA JAYA: A new state law on the distribution and reticulation of gas had been passed in the state assembly sitting here today.
All activities associated with the distribution of gas or within the distribution system for supply and delivery will be licensed by the state government under the new law.
State Utilities Minister Datuk Stephen Rundi Utom, when tabling the Distribution of Gas Bill, said the activities included the import of liquefied natural gas into the state, re-gasification, treatment, separation and processing of gas, transport, supply and retail of gas, the construction, management and maintenance of gas pipeline, terminals, plants and facilities.
All types of gases will be covered including natural gas, liquefied natural gas, liquefied petroleum gas, and specialty gases used by hi-tech industries and hospitals, he stated.
The Sarawak Gas Supply Services (Operating Company) Ordinance, 1995 will be repealed.
However, actions and matters under the ordinance, such as the vesting assets and properties in Sarawak Gas Distribution Sdn Bhd (SGD) would not be affected.
SGD, Rundi said, currently supplying piped gas to over 20,000 domestic, commercial and industrial consumers in Miri will continue to service these consumers under current tariff rates based on the agreements.
“Petronas, as a producer and supplier of gas for distribution in Sarawak, will be subjected to the new law. Thus, Petronas needs to be licensed as well.
“Petronas will have to discuss with the state government in having those prescribed activities regulated under our state law,” he said.
“These efforts would not jeopardise Petronas’ operations and business in the state but we (state government) want Petronas to be mindful of the aspirations and needs of our people here and that it should operate in an environment like all other parties involved in the gas supply industry, which are subject to the state law,” he added.