KUCHING: The Sarawak Ministry of Utility and Telecommunication (MUT) has reaffirmed its commitment to ensuring full compliance with all laws and regulations governing the gas distribution industry in the state.

Its Minister, Dato Sri Julaihi Narawi said regulatory oversight of gas distribution activities in Sarawak falls under the Distribution of Gas Ordinance (DGO) 2016, the state’s equivalent to the federal Gas Supply Act 1993.

“Unlike other Malaysian states where the Energy Commission, established under the Energy Commission Act 2001, acts as the regulatory authority, in Sarawak, this responsibility lies with the Director of Gas Distribution appointed under the DGO 2016,” he said.

He said this during his ministerial winding-up session at the 19th Sarawak Legislative Assembly (DUN) Sitting on Monday.
According to him, the Director of Gas Distribution is tasked with ensuring full compliance with all licensing requirements and is empowered to impose financial penalties for any non-compliance without affecting any prosecution proceedings that may be initiated by the relevant authorities.

As such, he said all parties involved in gas distribution and supply activities are required to apply for a licence under Section 7 of the DGO 2016.

Failure to comply with this licensing requirement constitutes an offence under Section 20 (criminal case) or Section 21A (civil claim) of the ordinance, and offenders may face fines, imprisonment, or both.

“For the information of this August House, since the amendments to the DGO 2016 in 2023, my Ministry has implemented several significant regulatory measures.

“These include the issuance of 14 activity licences to upstream industry players and 537 licences to downstream players.
“In addition, the Ministry has issued 10 non-compliance notices to five companies found to be operating without a licence under Section 7 of the DGO 2016,” he said.

In enforcing the law, Dato Sri Julaihi added that MUT will maintain an investor-friendly environment to attract new investments into the state.

He said this ensures the state’s gas resources are sustainably managed to support industrial growth and remain available at affordable prices for the benefit of all Sarawakians. -UKASnews