Gas Connection Manual and Lease Agreement

Implementation of Gas Connection Manual and Lease Agreement Between Gas Malaysia Distribution Sdn Bhd and Connected Parties

Gas Malaysia Distribution Sdn Bhd (“GMD”), a wholly owned subsidiary of Gas Malaysia Berhad (“GMB”), wishes to inform that pursuant to the Third Party Access Code for Malaysian Distribution Pipelines, GMD as a distribution licensee has established a Gas Connection Manual (“GCM”) to govern the physical connection between GMD’s gas distribution pipeline and the Connected Parties’ (consumers or retail licensees) facilities, whose premises receive gas through GMD’s Natural Gas Distribution System (“NGDS”).

The objectives of the GCM are as follows:

  • Ensure technical compatibility of the connected facilities for the safe  and reliable operation of the NGDS;
  • Define the roles and responsibilities of GMD and the Connected Parties; and
  • Ensure fair, transparent, and non-discriminatory connection arrangements between GMD and the Connected Parties.

Furthermore, under the previous Gas Supply Agreement between GMB and its customers, the customers were required to provide an area in their premises for GMB to construct, operate and maintain its facilities, which are connected to the customers’ facilities for the purpose of delivering gas to them. Under the Third Party Access system established via the Gas Supply (Amendment) Act 2016, the ownership of GMB’s facilities has now been transferred to GMD, being the distribution licensee. Due to the aforesaid restructuring, a Lease Agreement has been established by GMD to represent such arrangements.

Following the above, GMD has sent a letter to all Connected Parties to introduce the implementation of GCM and Lease Agreement. Concurrently, GMD has been taking steps to communicate directly to all Connected Parties on these new requirements and the execution of the documents.

More information on GCM and Lease Agreement is available in Frequently Asked Questions.

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