THIRD PARTY ACCESS (TPA):Gas Market Reform in MalaysiaNational Investment Seminar 2018

30 October 2018

by

Rumaizi A Halim

Industry Planning & Development Department

Do you face these challenges?

SUPPLIERS BUYERS

• How do I access the market?

• Who do I sell my gas to?

• How do I compete effectively?

• Who is going to build the pipeline?

• Can I negotiate better terms?

• Where do I buy the gas from?

• My plant is far from pipeline.

These are the drivers for market reform…

• Enhance consumers choice

• Increase quality of services

• Promote competitive pricing

• Secure & sustainable supply

The reform was initiated thru RMK-11

2016 2017 2018 2019 2020-2022

GSA 1993

Amended on 9September2016.

IN FORCE

Came into force on 16 January 2017.

ACCESS RULES

Finalize Access Arrangement:RGT & PGU

TRIAL PERIOD

Operationalize AAPublished tariff

RP 1

Enforce AA .

TPA PROVIDES OPPORTUNITIES ACROSS GAS VALUE CHAIN

Gas Supplier (A)Infrastructure /

gas facilities (B)

Wholesaler /

Shipper (C)User

PETRONAS LNG

Piped gas

Regas PGU Sys

Power

Industry

New Co. LNG

Piped gas

PETRONAS

New Co.

GMES(Distribution)

Export

Distribution (D)

Industry

CommercialNew Co.

Residential

Dist Sys

REGULATEDTPA

5%

23%

45%

27%

Existing infra opens opportunity for virtual pipeline connectivity

LICENSED ACTIVITIES UNDER TPA REGIME

REGASIFICATION

TRANSPORTATION

SHIPPING

IMPORT INTO REGASIFICATION

TERMINAL

DISTRIBUTION

USE OF GASe.g. restaurants,

hospitals, factories

RETAILe.g. shopping

complexes

LICENSED ACTIVITIES UNDER TPA

REGIME

Visit us at: https://www.st.gov.my/

Email us at:rumaizi@st.gov.my

norshahida@st.gov.mysarah@st.gov.my