MoU issues licence fees for gas distribution activities in Sarawak


KUCHING, Dec 17: The Ministry of Utilities (MoU) announced that starting January 1, 2020, the Distribution of Gas Ordinance 2016 (DGO 2016) will be fully enforced in Sarawak.

MoU in their statement specified that seven activities of gas distribution as stipulated in Part 3 Section 7 of the DGO 2016 shall not be carried out without a licence.

For activities which include (a) import of any gas for re-gasification, processing, treatment, separation, utilization or distribution in Sarawak; (b) regasification of gas; and (c) treatment, and separation or processing of gas; the license fees per year is RM0.001 per Million British Thermal Unit (MMBTU).

For (d) transportation of gas; the license fee per year is RM0.005 per MMBTU.

As for (e) building, managing or maintaining gas pipeline or other apparatus or equipment or mechanism for the distribution of gas; the license fee is charged according to the class of installation, which are RM600 per year for Class I, RM400 per year for Class II, and RM200 per year for Class III.


As for (f) supply of gas; the license fees are RM0.001 per MMBTU for Natural Gas and Liquefied Natural Gas, while RM600 per year for Liquefied Petroleum Gas.

As for (g) retail of gas; the fee of RM25 per year is charged.

The ministry stressed that applications for the Approval to Install (ATI), Approval to Operate (ATO) and gas licence should be submitted to the Office of the Director of Gas Distribution at the Ministry of Utilities Sarawak.

“Applicants should note that we require them to have a valid licence issued under the Ordinance to carry out the gas distribution activities in Sarawak even though they may have permits or licences issued by any other government agencies.

“They would impose penalties for non-compliance with the Ordinance,” said MoU.

MOU further specified that any activities involving building, managing or maintaining of gas pipeline or other apparatus or equipment or mechanism for the distribution of gas (such as Laundrette, Restaurants and Hotels), applicants were required to obtain ATI, ATO and a gas license.

All relevant forms can be downloaded at mou.sarawak.gov.my.—DayakDaily