Library / Gas Distribution Systems Regulations 2023
Gas Distribution Systems Regulations 2023

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(5)  The basic unit of the grid system shall be a parcel of one square
kilometre, subject to adjustment of the zones and national boundary.
(6) The Authority may further subdivide zones into equal units of one
hectare or such sub-units as the Authority may deem appropriate.
(7) The national grid system referred to in subregulation (1) shall be
used for the administration of gas distribution licences, including—
(a) the definition of licence areas ;
(b) surrenders ;
(c) bid procedures ;
(d) conservation measures ; and
(e) other regulatory and local distribution zone management procedures.
(8)  The boundary of an existing gas distribution system with a petroleum
pipeline licence, which does not conform to the new national grid system shall
remain unaltered for the duration of the petroleum pipeline licence and any
renewals thereafter.
(9)  The Authority shall, in the designation of local distribution zones,
consider—
(a)  the geographical area or limit ;
(b)  natural gas availability ;
(c)  connectivity with an existing or proposed natural gas pipeline ;
(d) availability of alternative gas supply (including LNG, CNG) to the
city gate station of the proposed gas distribution system ;
(e)  the potential demand for a gas distribution licence in such zone ;
(f )  the population and settlement ; and
(g)  any other considerations the Authority may deem relevant for safe
and sustainable operations.
5.—(1)  Subject to the provisions of Regulation 7, a gas distribution
licence shall only be granted—
(a)  based on a fair, transparent and competitive bidding process ; and
(b)  in compliance with the provisions of the Act, these Regulations and
the licensing round guidelines issued by the Authority for each licensing round.
(2)  The Authority may periodically publish a licensing round plan for
local distribution zones.
(3)  The Authority may grant a gas distribution licence to a winning
bidder, provided that the winning bidder has complied with the requirements of
the bid invitation and licensing round guidelines.
(4)  The Authority shall issue an offer letter to the winning bidder within
30 days of the conclusion of the bid process.
Bidding
process for
a  local
distribution
zone