KUALA LUMPUR: Consumers in Malaysia are set to enjoy competitive pricing and efficient services in gas supply, thanks to the Gas Supply (Amendment) Bill 2016 passed by the Dewan Rakyat today.
The amendment is set to enhance competition with the participation of third parties in the gas supply industry by implementing Third Party Access (TPA).
Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar, in winding up debate on the bill, said the gas supply industry is currently monopolised by existing industry players such as Petronas Gas Bhd and Gas Malaysia Bhd.
“Currently, the only party which supplies gas through pipeline transmission is Petronas, the nation’s natural gas producer which sells gas to other parties such as Gas Malaysia Bhd.
“Petronas Gas Bhd is the owner and operator of transmission pipelines and regasification terminals in Peninsular Malaysia which is a subsidiary of national oil company Petronas, and this monopoly situation needs to be liberalised.
"TPA will enable parties other than the Petronas to take part in the country's gas supply industry by becoming a licensee, utilising gas infrastructure such as regasification terminal, pipeline transmission and distribution pipelines to supply gas to consumers,” he said.
The bill also provides for regulation against anti-competitive behaviour and abuse of a dominant position to protect the rights of consumers.
The amendment also involves the provision of Clause 4 of the bill that applies to Sarawak, a major gas producer and exporter for Malaysia, after obtaining the approval of the Governor of Sarawak.