KUALA LUMPUR (Dec 27): Gas Malaysia Bhd said its wholly-owned units have received the nod from the Energy Commission to provide services pursuant to the implementation of third-party access (TPA) of Malaysia’s regasification and gas distribution facilities, beginning next year.

The commision has granted a 10-year shipping licence to Gas Malaysia Distribution Sdn Bhd (GMD), and a 20-year shipping licence to Gas Malaysia Energy & Services Sdn Bhd (GME), Gas Malaysia said in a bourse filing.

The distribution licence permits GMD to carry out the activity of operating and maintaining the distribution pipeline to deliver gas through the distribution pipeline.

The shipping license, meanwhile, allows GME to carry out the activity of a shipping licensee including 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 pipelines to consumer premises.

“Both licences will take effect commencing 1 January 2020,” the filing added.

Under the Gas Supply Act 1993 (as amended by the Gas Supply (Amendment) Act 2016), third parties can have access to the gas infrastructure such as the regasification terminals and the transmission and distribution of pipelines.

Under the TPA, new gas suppliers can bring liquefied natural gas (LNG) into the country via the regasification terminal and ship their gas to their buyers using Petronas Gas Bhd’s Peninsular Gas Utilisation Transmission, and Gas Malaysia Bhd’s Natural Gas Distribution System distribution pipelines, spanning 2,334km.

Similarly, the TPA would also allow large gas users to purchase their own LNG from any source, and subsequently use the same gas infrastructure to bring the gas to their facilities.

In Peninsular Malaysia, Petroliam Nasional Bhd (Petronas) has two regasification terminals in Sungai Udang, Melaka and Pengerang, Johor.

Other candidates for the TPA of these facilities include Malaysian independent power producers (IPPs).

The government plans to allow IPPs to independently source its coal and gas fuel sources from third parties, instead of from Tenaga Nasional Bhd and Petronas presently, as part of the Malaysian Electricity Supply Industry 2.0 power sector reform announced this year.