Introduction

One of the objectives of the Economic Transformation Program (ETP) – a government initiative launched in 2010 to elevate the country to developed-nation status - is to liberalize the gas market in Malaysia and one way to achieve it is by implementing the third party access (TPA) system where third parties are able to access gas facilities that they do not own or operate. In pursuance of such matter, the Gas Supply Act 1993 was amended in 2016 and came into effect on 16 January 2017 to provide the legal framework for the TPA system.

The TPA system will allow multiple entities to have access to and utilize the gas facilities available in Malaysia on the same terms and conditions. Currently, there are three types of gas facilities that fall under the scope of the TPA system, namely the regasification terminals, transmission pipelines and distribution pipelines. With TPA system in place, it is envisaged that there will be healthy competition among the players thus ensuring reliable and sustainable gas supply to consumers.