Section 125: Activities requiring a Licence for Midstream and Downstream Gas Operations.

1 Except in accordance with an appropriate licence issued by the Authority, a person shall not undertake the following activities with respect to midstream and downstream gas operations—
a establish, construct or operate a facility for the processing of natural gas;
b establish, construct or operate a facility for the storage of natural gas;
c establish, construct or operate a gas transportation pipeline;
d engage in bulk transportation of natural gas by rail, barge or other means of transportation;
e operate a gas transportation network;
f establish, construct or operate a terminal, jetty, or other facility for the export or importation of natural gas;
g engage in wholesale gas supply; or
h engage in the construction or operation of petrochemical or fertiliser plants.

2 Except in accordance with an appropriate licence issued by the Authority, a person shall not undertake the following activities with respect to downstream gas operations—
a retail trading, distribution or supplies of natural gas;
b establishment, construction or operation of a gas distribution network; or
c establishment, construction or operation of a facility for the supply or trading of natural gas.

3 The Authority may, by regulation, prescribe additional activities to be undertaken only on the basis of a licence or permit and shall have power to issue licences or permits for the activities in accordance with this Act.

4 Where a person engages in any of the activities set out in subsection (1), (2) or (3) without a licence or permit, the Authority shall—
a seal the premises where the activity is undertaken;
b seize the facilities by which the activities were undertaken;
c confiscate and dispose of equipment or materials employed by the person in the activity in a manner prescribed by regulations under this Act;
d impose penalties as prescribed by regulations under this Act; or
e impose any combination of the provisions under paragraphs (a), (b), (c) and (d).

5 Notwithstanding any provision of this Act, a person who engages in any of the activities set out in subsection (1), (2) or (3) without a licence or permit, commits an offence and is liable to imprisonment for a term of—
a one year or to a fine prescribed by regulation, in the case of an activity requiring a licence; or
b six months or to a fine prescribed by regulation, in the case of an activity requiring a permit.

6 A holder of a subsisting lease, licence or permit who is engaged in activities in midstream or downstream gas operations prior to the effective date shall, within 18 months from the effective date, apply to the Authority for, and the Authority may issue the appropriate licence or permit, where applicable.

7 The provisions of subsections (4) and (5) shall not apply to any person under subsection (6) until the Authority has considered the application and given a decision.

8 Where any person, in applying for a licence or permit, knowingly makes a false or misleading statement, the Authority may —
a suspend or revoke the licence or permit; or
b impose a fine on the licensee or permit holder on the basis of the false or misleading information.