Parts V and VI of the Petroleum (Safety Measures) Act 1984 disapplied to gas supplied to ‘consumers’

The Petroleum (Safety Measures) (Amendment) Act 1993 (‘Amendment Act’) will come into operation on 2 February 2022 pursuant to Legislative Supplement B (P.U.(B)) 41/2022.
 
When the Amendment Act comes into operation, the Petroleum (Safety Measures) Act 1984 (‘Principal Act’) will be amended as follows: 

  • Part V of the Principal Act (which provides for the transportation of petroleum by pipelines) will cease to apply to the supply of gas to consumers through pipelines under the Gas Supply Act 1993 (‘Gas Supply Act’); and 

  • Part VI of the Principal Act (which provides for the storage and handling of petroleum) will cease to apply to  a licensee under the Gas Supply Act for the supply of gas to consumers through pipelines from the storage tank or cylinder specifically used for reticulation of gas to any apparatus in any premises. 
For the purposes of the aforementioned provisions, the expressions ‘gas’, ‘consumers’ and ‘pipelines’ are given the meanings assigned to those expressions under the Gas Supply Act, that is: 

  • ‘gas’ means natural gas, liquefied natural gas or liquefied petroleum gas; 

  • ‘consumer’ means any direct or indirect user of gas, facilities or services provided by a licensee in the course of business, and includes another licensee that uses the gas, facilities or services thus provided as an input to its own business including as a shipping, retail or private gas licensee, a consumer whose premises receive gas through a transmission or distribution pipeline or a consumer of a retail licensee; and 

  • ‘pipelines’ means all parts of those physical facilities including installations, through which gas moves for purpose of regasification, transportation or distribution of gas. 
It should be noted that for the purposes of the amendments under the Amendment Act, a ‘consumer’ is broadly defined and includes any person who uses gas, directly or indirectly as an input to its own business.
 
The amendments under the Amendment Act are in line with the gas industry reform introduced pursuant the Gas Supply (Amendment) Act 2016.
 
Alert by Tan Wei Xian (Senior Associate) of the Oil & Gas and Energy Practice of Skrine.
 

This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.