(1) This Act may be cited as the Gas Supply (amendment) Act 2016 .

(2) This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette and the Minister may appoint different dates for the coming into operation of different provisions of this Act in different parts of Malaysia.

(3) This Act shall apply throughout Malaysia; however the Minister may, by order, suspend the operation of the whole or any of the provisions of this Act in any

1 -1. Short title and commencement.

(1) This Act may be cited as the Gas Supply (Amendment) Act 2016 .

(2) This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette and the Minister may appoint different dates for the coming into operation of different provisions of this Act in different parts of Malaysia.

(3) This Act shall apply throughout Malaysia; however the Minister may, by order, suspend the operation of the whole or any of the provisions of this Act in any State.

(4) Section 4A comes into operation on the date this Act is published in the Gazette .

2 -2. Substitution of long title.

The Gas Supply Act 1993 [Act 501] , which is referred to as the "principal Act" in this Act, is amended by substituting for the long title the following long title:

"An Act to provide for the licensing of the import into regasification terminal, regasification, shipping, transportation, distribution, retail or use of gas in the supply of gas through pipelines and related matters, the supply of gas at reasonable prices, the control of gas supply pipelines, installations and appliances with respect to matters relating to safety of persons in the distribution, retail or use of gas and for purposes connected therewith.".

3 -3. General amendment.

The principal Act is amended-

(a) in the English language text, by substituting for the words "shall be guilty of" wherever appearing the word "commits"; and

(b) by substituting for the word "installation" wherever appearing the words "piping system" except for section 2, subsections 12(8), 20(3) and (4), 30(1) and 36(1).

4 -4. Amendment of section 1.

Section 1 of the principal Act is amended-

(a) by substituting for subsection (3) the following subsection:

"(3) This Act shall apply to the delivery of gas-

(a) in relation to-

(i) liquefied natural gas, from the connection flange of the loading arm at the regasification terminal;

(ii) natural gas received from a gas processing plant or an onshore gas terminal, from the last flange of the gas processing plant or onshore gas terminal;

(iii) natural gas imported into Malaysia through pipelines excluding pipelines upstream of a gas processing plant or an onshore gas terminal, from the international border,

to the transmission or distribution pipelines, or a piping system and to any gas appliance in the premises of a consumer; and

(b) from the filling connection of a storage tank or cylinder specifica

4A -4A. New section 1A.

(1) The principal Act is amended by inserting after section 1 the following section:

" 1A. Application for State of Sarawak

Notwithstanding subsection 1(2), this Act shall apply to the State of Sarawak, upon prior approval of the Yang di-Pertua Negeri Sarawak, on the date to be appointed by the Minister by notification in the Gazette and the Minister may appoint different dates for the coming into operation of different provisions of this Act.".

(2) The operation of the principal Act is deemed to be suspended for the State of Sarawak from 17 July 1997, and for that purpose it shall be treated as if an order has been made under subsection 1(2) of the principal Act, until a date is appointed by the Minister under section 1a of the principal Act as introduced in subsection 4A(1) of this Act.

5 -5. Amendment of section 2.

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

6 -6. Substitution of section 4.

The principal Act is amended by substituting for section 4 the following section:

" 4. Functions and duties

(1) The Commission shall have the following functions and duties:

(a) to secure that a licensee authorized by or under this Act to import into regasification terminal, ship or retail gas through pipelines satisfies all reasonable demands for gas;

(b) to ensure that a regasification, transportation or distribution licensee satisfies all reasonable demands for access to the facility;

(c) without prejudice to the generality of paragraphs (a) and (b) , to ensure that such licensee is able to finance the import into regasification terminal, shipping or retail or the provision of facility of regasification, transportation or distribution of gas;

(d) to protect the interests of consumers of gas supplied through pipelines

7 -7. Substitution of section 4A.

The principal Act is amended by substituting for section 4A the following section:

" 4A. Authorized officer

(1) The Minister may in writing authorize any public officer or officer of the Commission to exercise the powers of enforcement under this Act.

(2) Any such officer shall be deemed to be a public servant within the meaning of the Penal Code [Act 574] .

(3) In exercising any of the powers of enforcement under this Act, an authorized officer shall on demand produce to the person against whom he is acting the authority issued to him by the Minister.".

8 -8. Amendment of section 5.

Subsection 5(1) of the principal Act is amended by inserting after the word "cause" the words "including the investigation of any infringement or offence under this Act".

9 -9. Substitution of section 6.

The principal Act is amended by substituting for section 6 the following section:

" 6. Power to investigate

(1) The authorized officer shall have the power to conduct an investigation where there is reason to suspect that an offence or infringement of any prohibition has been or is being committed in relation to this Act or under any of its subsidiary legislation or any codes, guidelines or directions issued by the Commission.

(2) The authorized officer shall have all the powers of a police officer of whatever rank as provided for under the Criminal Procedure Code [Act 593] in relation to police investigation, and such powers shall be in addition to the powers provided for under this Act and not in derogation thereof.

(3) In the case of an offence committed under this Act or under any of its subsidiary legislation or any codes, guidelines or directions issued by the Commission, upon completi

10 -10. Amendment of section 7.

Section 7 of the principal Act is amended-

(a) in subsection (2), by substituting for the word "If" the words "In the case of an offence committed under this Act, if"; and

(b) by inserting after subsection (2) the following subsection:

"(3) In the case of an infringement of any prohibition under this Act, if any such person fails to attend as so required, the authorized officer may report such failure to the Commission for further action under sections 28L and 28O.".

11 -11. Substitution of section 11.

The principal Act is amended by substituting for section 11 the following section:

" 11. Activities to be licenced

No person shall carry out any activity of-

(a) import into regasification terminal;

(b) regasification of gas;

(c) shipping of gas;

(d) transportation of gas;

(e) distribution of gas;

(f) retail of gas; or

(g) use of gas,

unless such person is licensed under this Act.".

12 -12. New sections 11A, 11B and 11C.

The principal Act is amended by inserting after section 11 the following sections:

" 11A. Application for grant of licence

(1) A person may apply to the Commission for a licence for the activities mentioned in section 11 subject to such prescribed fee as may be imposed by the Commission.

(2) Any person applying for a licence under subsection (1) shall provide to the Commission the following details:

(a) in the case of a licence for distribution, retail or use of gas:

(i) area of supply;

(ii) site location plan showing the proposed location of the premises to be installed with the pipeline and its neighbouring area;

(iii) piping layout showing details of pipeline routes including the location of any storage tank or cylinder, site boundary, deflection wall and the nearest sources of ignition;

(iv) technical specifications of the pipelin

13 -13. Amendment of section 12.

Section 12 of the principal Act is amended-

(a) in subsection (2), by inserting after the words "to him" the words "or on any other ground determined by the Commission to be necessary or expedient";

(b) in subsection (6)-

(i) in paragraph (b) -

(A) by substituting for the words "acquire the pipeline and" the words "acquire the pipeline or"; and

(B) by substituting for the words "to supply gas" the words "delivery of gas"; and

(ii) in paragraph (c) , by substituting for the words "supply gas" the words "delivery of gas"; and

(c) in subsection (8), by substituting for the words "supply of gas through any pipeline or installation" the words "gas delivery system".

14 -14. Substitution of section 13.

The principal Act is amended by substituting for section 13 the following section:

" 13. Power to fix tariffs and charges

(1) The Commission, with the approval of the Minister, may determine tariffs and charges to be levied, by-

(a) a regasification, transportation or distribution licensee in respect of the utilization of their facilities for regasification, transportation or distribution of gas; and

(b) a retail licensee in respect of the sale or use of gas through the retail licensee's piping system to the premises of a consumer.

(2) The Commission may issue guidelines on tariffs and charges including-

(a) the methodology, principles or category of tariffs and charges;

(b) the duration for the imposition of tariffs and charges and for the review of the tariffs and charges; and

(c) th

15 -15. New sections 13A, 13B, 13C and 13D.

The principal Act is amended by inserting after section 13 the following sections:

" 13A. Obligation to submit business plan

(1) Subject to the terms and conditions of a licence, the Commission may request a regasification, transportation or distribution licensee to submit a five year, or such other period as determined by the Commission, rolling business plan relating to licensed activities updated on an annual basis or any other time period as determined by the Commission according to procedures provided in the guidelines issued by the Commission.

(2) Any licensee referred to in subsection (1) who contravenes this section commits an offence.

13B. Standards of performance of supply of gas and services by licensee

(1) The Commission may issue guidelines on such standards of performance in connection with the-

(a) supply of gas and provision of services t

16 -16. Substitution of section 14.

The principal Act is amended by substituting for section 14 the following section:

" 14. Duty of retail licensee to supply gas to consumers upon request or duty of the regasification, transportation or distribution licensee to allow utilization of their facilities by third parties

(1) Subject to the following provision of this Part and terms and conditions of a licence imposed under section 11B, regulations, codes or guidelines made under this Act, a-

(a) retail licensee shall upon request of a consumer supply gas to the consumer's premises; and

(b) regasification, transportation or distribution licensee shall upon request of a shipping licensee allow the utilization of his facility.

(2) Where any person requires a supply of gas under paragraph (1) (a) , he shall give to the retail licensee a notice specifying-

(a)

17 -17. Amendment of section 15.

Section 15 of the principal Act is amended-

(a) in the shoulder note, by inserting after the word "supply gas" the word "or to allow utilization of facility";

(b) in subsection (1)-

(i) by substituting for the words "Nothing in subsection 14(1) shall require a licensee to supply gas to any premises if -" the words "Nothing in subsection 14(1) shall require a retail licensee to supply gas to consumers or a regasification, transportation or distribution licensee to allow the utilization of his facility, if -";

(ii) in paragraph (b) , by deleting the words "or special agreement, as the case may be"; and

(iii) by substituting for paragraph (d) the following paragraph:

"(d) the supply of gas or the utilization of facility is already being granted; or"; and

(c) by substituting for subsection (2

18 -18. Amendment of section 16.

Section 16 of the principal Act is amended-

(a) by substituting for subsection (1) the following subsection:

"(1) Where any pipeline or piping system is provided by a licensee for the purposes of supplying gas or allowing the utilization of his facility under subsection 14(1), the licensee may, with the Commission's approval, require any expenses reasonably incurred by the licensee to be defrayed by the person requiring the supply of gas or the utilization of facility to such extent as is reasonable having regard to the circumstances.";

(b) in subsection (2), by substituting for the words "levied by him for the supply" the words "subject to section 13, where applicable, levied by him for the supply of gas or such utilization of facility"; and

(c) by substituting for subsection (3) the following subsection:

"(3) The expenses incurred i

19 -19. Amendment of section 17.

Section 17 of the principal Act is amended-

(a) by substituting for subsection (1) the following subsection:

"(1) A shipping or retail licensee may require any person who requires supply of gas to give him reasonable security for all monies which may become due to him-

(a) in respect of the shipping or retail of gas; and

(b) in respect of any necessary work to be done for the retail of gas,

and if the person fails to give such security, the shipping licensee may refuse to ship or in the case of a retail licensee, to supply the gas or provide the piping system until the security has been given.";

(b) by inserting after subsection (1) the following subsection:

"(1A) A regasification, transportation or distribution licensee may require any person who intends to utilize his facility under paragra

20 -20. Deletion of section 18.

The principal Act is amended by deleting section 18.

21 -21. Substitution of section 19.

The principal Act is amended by substituting for section 19 the following section:

" 19. Charge for regasification, transportation, distribution or retail of gas to be ascertained by appropriate meter

(1) Where any person is to be charged-

(a) as a consumer who receives gas from a shipping or retail licensee;

(b) as a private gas licensee who receives gas from a shipping licensee;

(c) as a retail licensee who receives gas from a shipping licensee; or

(d) for his utilization of the facility of a regasification, transportation or distribution licensee,

by reference to the quantity of gas involved, the gas shall be delivered through, and its quantity shall be ascertained by an appropriate meter including a pre-paid meter, automated metering infrastructure or by telemetering.

(2) The meter, to be provided by th

22 -22. Amendment of section 20.

Section 20 of the principal Act is amended-

(a) in the shoulder note, by substituting for the word "supply" the words "retail of gas";

(b) in subsection (1), by inserting before the word "licensee" the word "retail";

(c) in subsection (3)-

(i) by inserting before the word "licensee" the word "retail"; and

(ii) in paragraph (a) , by substituting for the words "pipeline or installation" the words "piping system";

(d) in subsection (4)-

(i) by inserting before the word "licensee" wherever appearing the word "retail"; and

(ii) by substituting for the words "pipeline or installation" the words "piping system"; and

(e) in subsection (5), by inserting before the word "licensee" wherever appearing the word "retail".

23 -23. Amendment of section 21.

Section 21 of the principal Act is amended-

(a) in the shoulder note, by substituting for the word "supply" the words "delivery or supply";

(b) in subsection (1), by substituting for the word "supply" the words "delivery or supply";

(c) in subsection (3)-

(i) in paragraph (a) , by substituting for the word "supply" the words "delivery or supply of gas"; and

(ii) in paragraph (b) , by substituting for the word "supply" the words "delivery or supply";

(d) in subsection (4), by substituting for the word "supply" the words "delivery or supply";

(e) in subsection (5), by substituting for the words "gas supply" the words "delivery or supply of gas in the manner and in accordance with guidelines issued by the Commission under this Act:";

(f) by inserting after subsection (5) the following

24 -24. Amendment of section 23.

Section 23 of the principal Act is amended in the shoulder note by inserting after the word "examine" the word "non-State".

25 -25. Amendment of section 24.

Section 24 of the principal Act is amended-

(a) in the shoulder note, by inserting after the word "on" the word "non-State";

(b) by substituting for subsection (1) the following subsection:

"(1) Whenever it is necessary for the purpose of installing any-

(a) pipeline for the regasification or transportation of gas; or

(b) pipeline for the distribution of gas or piping system,

a licensee may lay, place or carry on, under or over any land, other than State land, such pipeline or piping system as may be necessary or proper for the purposes of the licence, and may take such other action as may be necessary to render such pipeline or piping system safe and efficient, paying full compensation in accordance with section 28 to all persons interested for any disturbance, damage or disability that may be caused thereby and such

26 -26. Substitution of section 25.

Section 25 of the principal Act is amended-

(a) by renumbering the existing section as subsection (1);

(b) by substituting for subsection (1) as renumbered the following subsection:

"(1) Whenever it is necessary for the purpose of maintaining, repairing or upgrading any-

(a) pipeline for the regasification or transportation of gas; or

(b) pipeline for the distribution of gas or piping system,

the licensee, or any person authorized by him in that behalf, may at all reasonable times enter upon any land and may carry out all necessary repairs, and may, in the course thereof, remove vegetation and do all other things necessary to the said purpose, causing as little damage as possible and paying full compensation in accordance with section 28 to all persons interested for any damage that may be caused thereby for which com

27 -27. Amendment of section 26.

Section 26 of the principal Act is amended-

(a) by substituting for subsection (1) the following subsection:

"(1) Where any-

(a) pipeline for the regasification or transportation of gas has been installed on land under paragraph 24(1)(a); or

(b) pipeline for the distribution of gas or piping system has been installed on land under paragraph 24(1)(b),

and if any of the persons mentioned in subsection 24(3) desires to use the land in such a manner as to render it necessary or convenient that the pipeline or piping system referred to in paragraphs 24(1) (a) and (b) should be removed to another part of the land, or to land at a higher or lower level, or be altered in form, he may require the licensee to remove or alter such pipeline or piping system accordingly."; and

(b) by inserting after

28 -28. Amendment of section 27.

Subsection 27(1) of the principal Act is amended by inserting before the word "licensee" the words "regasification, transportation, distribution or retail".

29 -29. Amendment of section 28.

Subsection 28(1) of the principal Act is amended in the proviso, by inserting before the word "licensee" the words "regasification, transportation, distribution or retail".

30 -30. New Part VIA.

The principal Act is amended by inserting after section 28 the following Part:

" PART VIA

GENERAL COMPETITION PRACTICES

Chapter 1

Interpretation and application

28A. Interpretation

For the purposes of this Part-

"commercial activity" means any activity of a commercial nature within the scope of the Act but does not include-

(a) any activity, directly or indirectly in the exercise of governmental authority;

(b) any activity conducted based on the principle of solidarity; and

(c) any purchase of gas or services not for the purposes of offering gas or services as part of an economic activity;

"concerted practice" means any form of coordination between persons, including licensees, which k

31 -31. Amendment of section 29.

Section 29 of the principal Act is amended-

(a) by substituting for subsection (1) the following subsection:

"(1) Where a dispute arises between the licensee and the consumer with respect to matters falling under sections 13, 14 to 21 or between licensees on matters other than that pertaining to Part VIA, the dispute may be referred to the Commission.";

(b) by inserting after subsection (2) the following subsection:

"(2A) The practice and procedure to be followed in the determination of any dispute under paragraph (2) (a) may be such as the Commission considers appropriate.";

(c) in subsection (5), by substituting for the word "three" the word "ten"; and

(d) in subsection (7), by substituting for the words "on the service of supply of gas between a licensee and a consumer the licensee shall, unle

32 -32. Amendment of section 30.

Section 30 of the principal Act is amended-

(a) in subsection (1)-

(i) by substituting for the words "supplies gas through pipelines" the words "carries out any activity of retail or use of gas through a piping system";

(ii) by substituting for the word "five" the word "three"; and

(iii) by substituting for the words "pipeline or installation" the words "piping system";

(b) by inserting after subsection (1) the following subsection:

"(1A) Any person who, in contravention of section 11, carries out any activity of import into regasification terminal, regasification, shipping, transportation or distribution of gas through pipelines without any licence commits an offence and shall, on conviction, be liable to a fine not exceeding five hundred thousand ringgit, or to imprisonment for a term not exceeding five years or to both and to a furt

33 -33. New sections 30A, 30B, 30C, 30D and 30E.

The principal Act is amended by inserting after section 30 the following sections:

" 30A. Tipping off

(1) Any person who-

(a) knows or has reasonable grounds to suspect that an authorized officer is acting, or is proposing to act, in connection with an investigation which is being, or is about to be, conducted under or for the purposes of this Part and discloses to any other person information or any other matter which is likely to prejudice that investigation or proposed investigation; or

(b) knows or has reasonable grounds to suspect that a disclosure has been made to an authorized officer under this Act and discloses to any other person information or any other matter which is likely to prejudice any investigation which might be conducted following the disclosure,

commits an offence and shall, on conviction, be liable-

(i) i

34 -34. Amendment of section 31.

Section 31 of the principal Act is amended-

(a) by substituting for the word "fifty" the words "one hundred"; and

(b) by substituting for the word "one" the word "two".

35 -35. New section 32A.

The principal Act is amended by inserting after section 32 the following section:

" 32A. Offence of attempt and abetment

(1) Where any person-

(a) aids, abets, assists, incites or induces any other person to make or makes on behalf of another person an incorrect return, account, statement or declaration or to commit any offence punishable under this Act; or

(b) attempts to make or to make on behalf of another person an incorrect return, account, statement or declaration or to commit any offence punishable under this Act,

that person commits an offence and shall, on conviction, be punishable with the punishment provided for such offence under this Act provided that any term of imprisonment imposed shall not exceed one-half of the longest term provided for the offence.".

36 -36. Amendment of section 34.

Subsection 34(2) of the principal Act is amended by substituting for the word "Chairman" the words "Chief Executive Officer".

37 -37. New section 34A.

The principal Act is amended by inserting after section 34 the following section:

" 34A. Register

(1) The Commission shall maintain a register in both non-electronic and electronic form of all matters which are required to be registered under this Act and under any of its subsidiary legislation.

(2) Any person may on payment of any prescribed fee-

(a) inspect the register; and

(b) make a copy of, or take extracts from, the register.

(3) If a person requests that a copy be provided in an electronic form, the Commission may provide the relevant information-

(a) on a data processing device; or

(b) by way of electronic transmission.".

38 -38. Amendment of section 35.

Section 35 of the principal Act is amended by inserting before the word "pipeline" the word "distribution".

39 -39. New section 35A.

The principal Act is amended by inserting after section 35 the following section:

" 35A. Audit of licensee, etc

(1) The Commission may-

(a) carry out or cause to be carried out audit of any licensee, institution, manufacturer or importer, gas contractor or any other person as determined by the Commission on any licensed activity, any information furnished to the Commission or on any other matters as directed by the Commission;

(b) require a licensee to appoint, at their own cost, an independent expert, with qualifications as may be stated by the Commission to review or audit on any licensed activity, any information which a licensee furnishes to the Commission or on any other matters as directed by the Commission.

(2) For the purpose of subsection (1), the review or audit shall be carried out in accordance with any codes, guidelines, direc

40 -40. Amendment of section 36.

Subsection 36(1) of the principal Act is amended by substituting for the words "pipeline or installation" the words "distribution pipeline or retail or use of gas through piping system".

41 -41. Amendment of section 37.

Section 37 of the principal Act is amended by inserting before the words "in respect of" the words ", the President, members, Secretary, officers of the Gas Competition Appeal Tribunal or any person authorized to act for and on behalf of the Gas Competition Appeal Tribunal".

42 -42. New sections 37A, 37B, 37C, 37D, 37E, 37F and 37G.

The principal Act is amended by inserting after section 37 the following sections:

" 37A. Public Authorities Protection Act 1948

The Public Authorities Protection Act 1948 [Act 198] shall apply to any action, suit, prosecution or proceedings against the Commission, the Chairman, Chief Executive Officer, any member, officer, servant or agent of the Commission, the President, any member, the Secretary, officer, servant or agent of the Gas Competition Appeal Tribunal in respect of any act, neglect or default done or committed or any omission by it or him in good faith, in such capacity.

37B. Development of codes by Commission and compliance of codes

(1) The Commission may, with the approval of the Minister, develop and issue codes relating to the use of regasification terminal, transmission or distribution pipelines together with the approval of any access arrangements, or for the reta

43 -43. Amendment of section 39.

Section 39 of the principal Act is amended-

(a) by substituting for paragraph (b) the following paragraph:

" (b) the limits of variation of the quality of gas in the gas delivery system and pressure of the gas delivered involving its distribution, retail or use of gas;";

(b) by substituting for paragraph (f) the following paragraph:

" (f) the measures to be taken and the regulation of equipment, appliances and fittings together with payment of fees for their approval, to be supplied and used in connection with distribution pipelines and piping system in the retail or use of gas in order to secure public and private safety;";

(c) by inserting after paragraph (f) the following paragraph:

" (fa) the regulation of meters together with payment of fees for

44 -44. Amendment of section 40.

Section 40 of the principal Act is amended by substituting for the word "supply" the word "delivery".

45 -45. Amendment of section 41.

Section 41 of the principal Act is amended by substituting for the words "supply of gas through pipelines" the words "delivery of gas through the distribution pipeline or the piping system".

46 -46. Savings and transitional provision.

(1) Any person who was carrying the activity of import into regasification terminal, regasification, shipping, delivery, transportation, distribution, reticulation, retail or use of gas before the date of coming into operation of this Act, shall make an application for a licence in accordance with this Act within twelve months from the date of coming into operation of this Act.

(2) Where on the date of coming into operation of this Act, requests for the supply of gas are pending before the licensee under the principal Act, the provisions of the principal Act relating to the exceptions to the duty to supply gas as amended by this Act shall apply.

(3) Any registration, act, order, direction, authorization, approval or decision done, made or given before the date of coming into operation of this Act shall be deemed to be done, made or given under this Act and shall continue in full force and effect in relation to whom they apply until revo