KUCHING: The Sarawak Ministry of Utility and Telecommunication is intensifying regulatory enforcement of the state’s gas industry following the amendments to the Distribution of Gas Ordinance 2016 (DGO 2016), which came into effect in 2023.
Deputy Minister for Utility (Sarawak Energy Berhad and PETROS), Dato Ibrahim Baki, said that since the implementation of the amendments, the Ministry has introduced various strategic measures to ensure that gas sector operations in Sarawak are conducted in a more orderly, safe, and lawful manner.
“To date, a total of 14 licences have been issued to upstream players, while 537 licences have been granted to downstream operators under DGO 2016, enabling them to carry out legal operations in Sarawak,” he said.
Dato Ibrahim made these remarks in response to a question from Daro Assemblyman, Safiee Ahmad during the 19th Sarawak Legislative Assembly sitting on Thursday.
He explained that the enhanced licensing efforts are not only aimed at improving compliance with statutory requirements but also at fostering the sustainable growth of the state’s energy industry.
At the same time, the Ministry has adopted a strict enforcement approach against illegal operators, having issued 10 non-compliance notices to entities found to be engaging in gas distribution activities without a valid licence.
“This is a clear reflection of our commitment to ensuring that all activities within the gas sector are effectively regulated in the interest of public safety and the sustainability of Sarawak’s energy supply,” he stated.
Dato Ibrahim further emphasised that under DGO 2016, activities requiring a licence include importation, regasification, processing, transportation, pipeline construction, gas supply and sales.
“Any party found carrying out gas-related operations without a valid licence in Sarawak may be fined up to RM20 million for a first offence, and up to ten times that amount for subsequent offences,” he added.
The Ministry’s proactive approach underscores Sarawak’s determination to strengthen its regulatory framework and uphold the integrity of its gas industry in line with the state’s broader energy development agenda. -UKASnews
