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Rajah & Tann Regional Round-Up

your snapshot of key legal developments in Asia

Issue 2 - Apr/May/Jun 2016


MALAYSIA

Amendment to the Gas Supply Act 1993

On 14 June 2016, Senate passed the Gas Supply (Amendment) Bill 2016. The key change to the law is the introduction of the third party access framework, where third parties will be allowed to bring in liquefied natural gas into Malaysia. It has been a long standing criticism that the gas industry has been monopolized by two industry players who are Gas Malaysia Berhad, the only entity that is licensed by the Energy Commission under the Gas Supply Act 1993 to supply and sell reticulated natural gas in Malaysia, and Petronas Gas Berhad, the owner and operator of transmission pipelines and regasification terminals in Peninsular Malaysia. The introduction of the third party access framework is set to enhance competition in the natural gas supply industry. The 2016 Bill also introduces a new Part VIA (General Competition Practices) and a Gas Competition Appeal Tribunal to regulate competition practices in the natural gas supply industry. For example, the 2016 Bill introduces a prohibition of any horizontal or vertical agreement which has the object or effect of significantly preventing, restricting or distorting competition in the market.

CAMBODIA

INDONESIA

LAO PDR

MALAYSIA

SINGAPORE



Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.

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