KUCHING – Sarawak is seeking to regulate the distribution of gas in the state if the proposed Distribution of Gas Bill 2016 is passed by the ongoing state Legislative Assembly sitting.
State Public Utilities Minister Datuk Seri DrStephen Rundi said the bill was an important step towards greater state control over the utilisation of an important resource, namely natural gas.
“It will be an a significant result arising from the ongoing process of the devolution of power (to Sarawak),” he said when presenting the bill in the state Legislative Assembly sitting here today
“The resources is produced, albeit offshore, but in the continental shelf of the state and therefore, within its boundaries, and from state land as defined in the Land Code,” he said.
He added when passed, all activities related to gas distribution or within the distribution system for supply and delivery would be licensed by the state through the director of Gas Distribution.
“These activities include the import of liquefied natural gas into Sarawak, regasification, treatment and the separation and processing.
“They also include the transport, supply and retail of gas, construction, management and maintenances of pipelines, terminals, plants and facilities,” he said.
Rundi added the distribution of all types of gas such as natural gas, liquefied natural gas (LNG), liquefied petroleum gas (LPG), specialty gases used in high tech industries and hospitals would be covered.
He said the Sarawak Gas Supply Service (Operating Company) Ordinance, 1995 would be repealed but action taken or things done under it would not be affected.
Ön its impact to Petronas, he said the corporation as a producer and supplier of gas for distribution in the state would be subjected to this new law and would have to discuss with the state government in having those prescribed activities.
He said the state government would want to see the growth of the gas industry with more local companies involved without jeopardising the operation and business of Petronas in Sarawak. – BERNAMA