Malaysia gas and LNG: 2017 long-term regional outlook
Malaysia has implemented third-party access (TPA) in January 2017, following the ratification of the Gas Supply (Amendment) Act 2016 in June 2016. Energy Commission was appointed as the overseer of TPA for the midstream gas infrastructure, setting the tariffs and regulating the access. Under the TPA scheme, uniform postage tariffs of RM 1.248/GJ (US$0.29/mcf) and RM 1.81/mmbtu (US$0.44/mmbtu) apply for the transmission and distribution pipelines, respectively. With the market opening up, new players - apart from PETRONAS Gas and Gas Malaysia - may emerge to participate in seven different segments: LNG importation, shipping, regasification, pipeline transportation, distribution, retail and gas utilisation. Existing players have been given 12 months to obtain relevant licenses for various segments in which they operate.