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Chapter 1 General Provisions
Article 1
This Act is enacted to advance the sound development of natural gas enterprises, protect the rights
and interests of consumers, and ensure public interest.
Article 2
The competent authorities stated in the Act are the Ministry of Economic Affairs at the central level,
municipal governments at the municipal level, and county (city) governments at the county (city)
level.
Article 3
The terms used in this Act are defined as follows:
1. “Natural Gas” refers to gas that is a mixture of gaseous hydrocarbons originating from
underground sources and contains main component no less than eighty percent methane.
2. “Natural Gas Enterprise” refers to Natural Gas Production Enterprise, Natural Gas Import
Enterprise and Natural Gas Utility Enterprise.
3. “Natural Gas Production Enterprise” refers to an enterprise that produces natural gas to supply
domestic Natural Gas Utility Enterprises, industrial sector users, electricity enterprises, cogeneration
system, or transportation sector users.
4. “Natural Gas Import Enterprise” refers to an enterprise that imports liquefied natural gas from
overseas to supply domestic Natural Gas Utility Enterprises, industrial sector users, electricity
enterprises, cogeneration system, or transportation sector users.
5. “Natural Gas Utility Enterprise” refers to an enterprise that supply natural gas to users in the
residential, commercial and service sectors via the natural gas conduit network.
6. “Public Natural Gas Conduit Installation Enterprise” refers to an enterprise that undertake the
installation engineering of pipeline projects contracted by natural gas utility enterprises or their
users and maintenance of conduit safety.
7. “Transmission and Storage Equipment” refers to the following transmission, distribution, and
storage equipment installed by a natural gas enterprise for the supply of natural gas:
(1) “Storage Equipment” refers to the equipment used for the storage of natural gas, including
spherical-type tanks and tube-type tanks.
(2) “Transmission and Distribution Equipment” refers to transmission pipelines, booster stations,
regulator stations, and other relevant equipment installed from the source location.
(3) “Blending Equipment” refers to the equipment used for blending air or other flammable gases to
adjust the heating value that natural gas provides.
(4) “Regasification Equipment” refers to the equipment used to regasify liquefied natural gas into
the gaseous state.
(5) “Unloading and Receiving Equipment” refers to the equipment used for unloading liquefied
natural gas.
Chapter 2 Registration and Permission
Article 4
The organization of a natural gas enterprise shall be a company limited by shares incorporated
following the Company Act.
A person who does not have Republic of China (Taiwan) nationality shall not be a promoter,
director, or supervisor of a natural gas enterprise.
Article 5
Operators of a natural gas production enterprise shall apply with the following documents to the
central competent authority for registration:
1. Company registration documents;
2. Map of plant location;
3. Annual production capacity and production-processing plan;
4. Certifying documents of qualified inspection for transmission and storage equipment;
5. Layout and capacity of transmission and storage equipment;
6. Lease agreements proof for lessees of processing factory or of transmission and storage
equipment.
Operators of a natural gas import enterprise shall apply with the following documents to the central
competent authority for registration:
1. Company registration documents;
2. Site location of receiving terminals and unloading capacity;
3. Import and supply plans;
4. Certifying documents of qualified inspection for transmission and storage equipment;
5. Layout and capacity of transmission and storage equipment;
6. Lease agreements proof for lessees of transmission and storage equipment.
Article 6
In order to establish a natural gas utility enterprise, the applicant shall submit an application along
with the following documents to the competent authority of the municipality or county (city) for
reviewing and annotation, which shall subsequently forward the required documents to the central
competent authority for permission:
1. Operation plan and progress chart;
2. Layout plans of transmission and storage equipment;
3. Transmission pipeline layout map at a scale of 1:10,000;
4. Gas supply area map at a scale of 1:10,000.
The application in the preceding paragraph shall include the following details:
1. Name and address of the enterprise;
2. Name, date of birth, residential address, and national identification number of the responsible
person.
The operation plan in Subparagraph 1 of Paragraph 1 shall include the following details:
1. Capital amount;
2. Natural gas procuring project;
3. Gas supply area;
4. Gas supply capacity;
5. Number of households, gas supply quantity, and calculation basis for each gas supply area;
6. The commencement date of gas supply for each gas supply area;
7. Items of transmission and storage equipment and the total investment amount;
8. Business revenue and expenditure budget estimates and financial plans;
9. Maintenance plan for transmission and storage equipment;
10. Consequence analysis and risk assessment.
Article 7
Upon receiving an application to establish a natural gas utility enterprise as stated in the preceding
article, the competent authority of the municipality or county (city) shall promptly issue a public
announcement for 30 days. The announcement shall state that other parties intending to apply for
establishment in the same gas supply area shall submit their applications following the provisions of
the preceding article, pay a guarantee bond within the announcement period, and submit the
documents stated in the preceding article within 60 days upon the expiration of the announcement
period.
Upon receiving an application stated in the preceding paragraph, the competent authority of the
municipality or county (city) shall conduct reviews and prepare written reports, and subsequently
forward the reports with the original applications and relevant documents to the central competent
authority for further review and approval.
The regulations regarding the amount, payment method, and criteria for refund and possible
forfeiture of the guarantee bond stated in Paragraph 1 shall be prescribed by the central competent
authority.
Article 8
The divisions of gas supply areas for natural gas utility enterprises is based on districts within
municipalities, and townships (including towns, cities, districts) within counties (cities). However,
for one of the following reasons, upon adjustment by the central competent authority, the divisions
are not subject to this restriction:
1. Changes to an administration boundary;
2. Economic benefit;
3. The failure of the original enterprise operator to supply sufficient natural gas to users within the
permitted gas supply area, and the original enterprise does not comply with instructions from the
competent authority to expand equipment or take other corrective measures within a specified
period;
4. Other special needs.
Natural gas utility enterprises are not permitted to supply gas outside their designated gas supply
areas without approval from the central competent authority.
Article 9
After obtaining an establishment permit, the natural gas utility enterprise shall complete the
following procedures:
1. Company registration: Company registration shall be completed within 4 months from the issue
date of establishment permit;
2. Installation of transmission and storage equipment: Installation shall commence within 1 year
from the issue date of establishment permit;
3. Application for gas supply operations: The application for gas supply operations shall be
submitted within 3 years from the issue date of the establishment permit.
The enterprise may apply for an extension if any of the procedures specified in the preceding
paragraph cannot be completed within the specified deadlines. The extension period specified in
Subparagraph 1 of the preceding paragraph shall not exceed 2 months. The extension period
specified in Subparagraph 2 of said Paragraph shall not exceed 6 months. The extension period
specified in Subparagraph 3 of said Paragraph shall not exceed 1 year. Each extension is limited to
one occurrence. However, the period of delay attributable to the factors beyond the control of the
natural gas utility enterprise shall not be included in the extension period.
Applications for an extension stated in the preceding paragraph shall be accompanied by opinions
from the competent authority of the municipality or county (city), which shall subsequently forward
them to the central competent authority for approval.
Failure to complete company registration, installation of transmission and storage equipment, or
submission of the application for gas supply operations within the specified deadline as per
Paragraphs 1 and 2, the central competent authority shall abolish the establishment permit.
Article 10
When applying for gas supply operations, the natural gas utility enterprise shall apply along with the
following documents to the competent authority of the municipality or county (city), which shall
subsequently forward the required documents to the central competent authority for the issuance of
a gas supply license:
1. Certificate of Company registration;
2. Identification documents of the responsible person;
3. Certifying documents of paid-in capital;
4. Certifying documents of qualified inspection for transmission and storage equipment and
locations;
5. Three copies of the gas supply area map;
6. Layouts and locations of transmission and storage equipment;
7. Gas supply commencement date.
For the certificate stated in Subparagraph 4 of the preceding paragraph, the following provisions
shall apply:
1. For equipment and locations requiring certificates with relevant laws and regulations on labor
safety and health, as well as fire services, certificates issued by the competent authorities shall be
obtained.
2. For equipment and locations other than those stated in the preceding Subparagraph, certification
of inspection by a private inspection organization recognized by the competent authority of the
municipality or county (city) in conjunction with relevant agencies or government organizations
shall be obtained.
The regulations regarding the qualifications, conditions, approval procedures, abolishment of
approval, and relevant information concerning private inspection organizations stated in
Subparagraph 2 of the preceding paragraph shall be prescribed by the central competent authority.
When issuing a gas supply license to a natural gas utility enterprise, the central competent authority
shall consider whether transmission pipelines pass through primary streets in the gas supply area
stated in the application.
Article 11
The gas supply license issued under Paragraph 1 of the preceding article shall specify the following
information:
1. Name and registered address of the company;
2. The responsible person;
3. Paid-in capital;
4. Gas supply areas.
If any of the information in the license stated in the preceding paragraph changes, the natural gas
utility enterprise shall, within 15 days from the date of change, submit relevant documents to the
competent authority of the municipality or county (city), which shall subsequently forward the
documents to the central competent authority for issuance of a revised gas supply license.
Article 12
If the documents in the application submitted for an establishment permit or gas supply license are
incomplete or inadequately recorded, the competent authority shall notify the applicant to make
corrections within a specified period. Failure to make the required corrections or incomplete
corrections by the deadline shall result in the rejection of the application.
Chapter 3 Equipment and Safety
Article 13
The material, testing, installations, and other safety aspects of the transmission and storage
equipment belonging to a natural gas enterprise shall comply with national standards or relevant
regulations. In the absence of national standards or regulations, the national standards of other
advanced countries recognized by the central competent authority may be adopted.
Natural gas enterprises shall install disaster prevention-related equipment for transmission and
storage equipment following the regulations stipulated by the competent authority.
Natural gas utility enterprises shall install regional gas supply systems capable of immediately
shutting off gas supply within their transmission and storage equipment.
The installation locations of the storage equipment, blending equipment, regasification equipment,
and unloading and receiving equipment of natural gas enterprises shall comply with geological
safety-related regulations.
The regulations regarding the scope, types, and procedures for recognizing the advanced national
standards of other countries stated in Paragraph 1, and the installation method, maintenance, and
other compliance requirements of disaster prevention-related equipment stated in Paragraph 2, shall
be prescribed by the central competent authority.
Article 14
Natural gas utility enterprises shall employ a certain number of full-time qualified natural gas
pipeline installation staff, responsible for the transmission pipeline installation engineering and
related safety maintenance operations.
The regulations regarding the qualification, number, recruitment or replacement procedures, and
other relevant matters concerning the qualified natural gas pipeline installation staff stated in the
preceding paragraph shall be prescribed by the central competent authority.
Article 15
Natural gas utility enterprises shall submit, in advance, their engineering plan for expanding or
modifying existing primary transmission and storage equipment to the competent authority of the
municipality or county (city), which shall subsequently forward the plan to the central competent
authority for approval. However, this requirement does not apply in disaster, damage, or
emergencies requiring temporary expansion or modification measures.
In the cases related the proviso stated in the preceding paragraph, the natural gas utility enterprise
shall report the measures taken within 1 month from the occurrence of the disaster, damage, or
emergencies to the competent authority of the municipality or county (city), which shall
subsequently forward the information to the central competent authority for reference.
When necessary, the central competent authority may delegate the competence of approval or
reference stated in the preceding two paragraphs to the competent authority of the municipality or
county (city).
Article 16
When there is a risk of disaster caused by transmission and storage equipment, natural gas
enterprises shall take the necessary measures or improvements promptly.
In the event of a fire or other extraordinary disasters near transmission and storage equipment,
natural gas enterprises shall assign technical staff to implement protective measures with a visible
sign. They may also suspend part or all of the gas supply or dismantle transmission and storage
equipment that pose a hazard if necessary.
Article 17
In the event of any type of disaster or emergency occurring within natural gas enterprises, or in the
situation stated in the preceding article, the enterprise shall simultaneously report to the competent
authorities at all levels.
The regulations regarding the matter to be reported, the deadlines, methods, procedures, and other
related matters for reporting stated in the preceding paragraph shall be prescribed by the central
competent authority.
Article 18
When a user applies for natural gas supply from a natural gas utility enterprise, the enterprise shall
inspect the conduit pipe among the meters and user’s devices and ensure safety before providing gas
supply.
Natural gas utility enterprises shall stipulate the methods and procedures for the inspection stated in
the preceding paragraph, including inspection items, inspection methods, inspection criteria, and
other relevant matters. These methods and procedures shall be submitted to the competent authority
of the municipality or county (city), which shall subsequently forward them to the central competent
authority for reference. Any revisions to these methods and procedures shall also follow the same
process.
Article 19
The natural gas supplied by natural gas enterprises shall comply with national standards.
natural gas utility enterprises supplying natural gas to users shall add sufficient odorants
recognizable by humans. The types and concentrations of the added odorants shall be regularly
submitted to the competent authority of the municipality or county (city) for reference.
The reporting format, variety, concentrations, and the reporting deadline stated in the preceding
paragraph shall be announced by the central competent authority.
Article 20
Before operation, public natural gas conduit installation enterprises shall apply for and obtain a
license from the competent authority of the municipality or county (city).
Public natural gas conduit installation enterprises shall employ a certain number of full-time
qualified natural gas pipeline installation staff.
The regulations regarding the requirements for license application, amendment, revocation,
abolishment, requirements and procedures of voluntary or ordered suspension of business, scope of
operations, qualification requirements and number for staff, selection or replacement of qualified
staff, and other matters to be complied by public natural gas conduit installation enterprises, shall be
prescribed by the central competent authority.
Chapter 4 Land
Article 21
The natural gas enterprise, requiring the purchase or lease of land from a third party for installing
transmission and storage equipment excluding gas transmission equipment, may apply to the
competent authority of the municipality or county (city) for coordination with relevant authority.
Article 22
The natural gas enterprise shall obtain prior approval from the relevant competent authorities when
necessary to install transmission and storage equipment that requires the use of roads, rivers, ditches,
bridges, embankments, woodlands, green spaces, parks, or other publicly used land, facilities, public
land, including airspace or underground area. If consent cannot be obtained, the enterprise may
apply to the competent authority of the municipality or county (city) where the natural gas
equipment is located for coordination. If necessary, the competent authority of the municipality or
county (city) may seek assistance from the central competent authority.
Article 23
A natural gas utility enterprise may install pipelines through other people’s land or the outer edge of
buildings if necessary. Before the installation, the enterprise shall give written notice to the property
owners or users. If the property owners or users raise objections, the enterprise may apply for
coordination with the competent authority of the municipality or county (city). If coordination
cannot be achieved, the enterprise shall seek permission from the competent authority of the
municipality or county (city) before proceeding with the installation. The enterprise shall provide
written notice to property owners or users 7 days before commencing with the installation.
If providing written notice stated in the preceding paragraph proves difficult, it may be substituted
with a public announcement.
The installation of the pipelines stated in Paragraph 1 shall choose the location and method that
causes the least damage and shall undertake repair or compensation.
Article 24
The property owners or users of the land or buildings traversed by pipelines installed by the natural
gas utility enterprise, as stated in the preceding article, may request the relocation of pipelines from
the natural gas utility enterprise for justifiable reasons such as changes in land usage or expansion.
Both parties shall share the associated expenses through mutual agreement. If an agreement cannot
be reached, the owners or users may request mediation from the competent authority of the
municipality or county (city). Legal procedures shall be followed if the issue cannot be resolved
through mediation.
Article 25
A natural gas utility enterprise, for the necessity of construction, inspection, or maintenance of a
pipeline, may enter or use other people’s land or buildings after providing written notice to the
owners or the users 7 days in advance. However, this requirement does not apply in the case of
disasters, damages, or emergencies.
Temporary use of the land or buildings under the preceding paragraph shall not damage the terrain
or landscape or constructed fixed structures. Any losses incurred due to entry or use shall be
compensated. In case of disagreements, the natural gas utility enterprise shall request approval from
the competent authority of the municipality or county (city) before compensation.
Article 26
Gas transmission pipelines shall be installed underground in principle. If there is a necessity to
install pipelines above ground or overhead, considerations shall be given to traffic, water work,
agriculture, landscape, or other relevant surface uses and safety.
Article 27
The installation or maintenance of pipelines by natural gas production or import enterprises, when
recognized by the central competent authority as necessary for the supply of natural gas utility
enterprises, shall apply mutatis mutandis to the provisions of Article 23 to the preceding article.
Chapter 5 Management
Article 28
Natural gas utility enterprises shall enter into contracts with their suppliers for the required natural
gas, specifying the responsibilities of both parties, heating value, pressure, gas quantity, delivery
point, pricing methods, and other obligations to be observed for both parties.
The competent authorities may request natural gas utility enterprises to provide the content of
contracts stated in the preceding paragraph if necessary.
Article 29
Natural gas utility enterprises shall prescribe operating rules regarding their service-related matters.
These regulations shall be submitted to the competent authority of the municipality or county (city)
for approval and be implemented after receiving approval. When approved, the competent authority
of the municipality or county (city) shall forward the regulations with relevant documents to the
central competent authority for reference. Any revisions to these regulations shall also follow the
same process.
The matters to be recorded in the operating rules and the templates stated in the preceding paragraph
shall be prescribed by the central competent authority.
Upon approval by the competent authority of the municipality or county (city), natural gas utility
enterprises shall announce and publish the operating rules in local newspapers 10 days before
implementation and make them available at each business location for users to review. Any
revisions to these regulations shall also follow the same process.
If the provisions of the operating rules of a natural gas utility enterprise are deemed obviously
inappropriate, detrimental to the public interest, harmful to the rights of users, or obliviously unfair
due to changes in social or economic conditions, the competent authority may notify the enterprise
to revise them within a certain period.
Article 30
Natural gas utility enterprises shall not refuse requests for gas supply within their gas supply areas
without justifiable reasons.
Article 31
Natural gas production or import enterprises shall maintain a stable gas supply and store the
required supply volume for their gas users.
Natural gas production or import enterprises shall maintain a certain number of days of storage tank
capacity.
The central competent authority shall prescribe the storage tank capacity stated in the preceding
paragraph.
Article 32
Natural gas production or import enterprises shall submit their pricing calculation method to the
central competent authority for approval.
Prior to approving the pricing calculation method stated in the preceding paragraph, the central
competent authority shall convene a review committee composed of scholars, experts, and relevant
civil organizations, such as consumer protection groups. If necessary, a hearing may be held
following the Administrative Procedure Act.
When the price is adjusted based on the pricing calculation method stated in Paragraph 1, the
enterprise shall publicly announce the adjustment in advance and report it in written form to the
central competent authority for reference within 3 days of the occurrence. If the price adjustment
resulting from the pricing items calculation is deemed obviously unreasonable, the central
competent authority may order appropriate adjustments.
Natural gas production or import enterprises shall retain the price calculation method, cost structure,
selling prices, and other related information for supplying users for 5 years. The central competent
authority may inspect or request such information when necessary. The enterprise shall not evade,
obstruct, or refuse such requests.
Natural gas production or import enterprises engaged in other business shall establish separate
accounting systems for assets, revenues, costs, profits, and losses.
Article 33
A natural gas utility enterprise may supply other industries, provided that this practice does not
affect the stable gas supply to users in the residential, commercial, and service sectors.
The natural gas utility enterprise, supplying other industries as per the preceding paragraph, shall
submit the following documents to the competent authority of the municipality or county (city),
which shall subsequently forward the documents to the central competent authority for reference:
1. Name of users;
2. Maximum peak-day load;
3. Utilized transmission and storage equipment.
The natural gas utility enterprise, supplying gas in accordance with Paragraph 1, shall establish
separate accounting items for the profits and losses, and shall not engage in cross-subsidization.
Article 34
Natural gas utility enterprises shall assess the selling prices and basic fees of natural gas supplied to
users in the residential, commercial and service sectors based on the calculation regulations. The
assessments, along with the relevant documents, shall be submitted to the competent authority of the
municipality or county (city), which shall subsequently forward them to the central competent
authority for approval before implementation. The same procedure applies when adjusting selling
prices or basic fees.
The central competent authority may order a natural gas utility enterprise to reassess the selling
prices and basic fees approved following the preceding paragraph and submit for approval following
the procedure in the preceding paragraph.
The calculation regulations for billing items, formulas, period for recalculating, and required data
submission for the selling prices and basic fees, as stated in the preceding two paragraphs, shall be
prescribed by the central competent authority. When necessary, the review committee, as stated in
Paragraph 2 of Article 32, may be utilized to assist in the review.
Before the central competent authority approves the selling prices and basic fees stated in Paragraph
1, the review committee, as stated in Paragraph 2 of Article 32, shall assist in the review.
When the gas purchase cost of a natural gas utility enterprise changes, the enterprise shall adjust its
selling prices of natural gas synchronously based on the amount of the change. Within 7 days from
the adjustment date, the enterprise shall report the adjustment to the competent authority of the
municipality or county (city) for reference. Upon recording, the competent authority of the
municipality or county (city) shall simultaneously notify the central competent authority.
Article 35
Natural gas utility enterprises may charge fees for installing natural gas pipeline equipment for the
use of the residential, commercial, and service sector users. The charge fees shall comply with the
billing regulations and shall be submitted to the competent authority of the municipality or county
(city), which shall subsequently forward it to the central competent authority for approval.
The competent authority of the municipality or county (city) shall make a public announcement
specifying the qualified natural gas conduit installation enterprises for users to commission the
installation of pipeline equipment inside buildings.
Upon completion of the installation, the natural gas conduit installation enterprise stated in the
preceding paragraph shall request an inspection by the natural gas utility enterprise and obtain a
qualified certificate. Only then can the natural gas utility enterprise commence gas supply.
The central competent authority shall prescribe the billing regulation stated in Paragraph 1.
Article 36
To promote consumer safety at home, the central competent authority shall establish a promotion
program upon the Act’s implementation date, directing natural gas utility enterprises to implement
microcomputer gas meters equipped with earthquake-triggered shutoffs, low pressure-triggered
shutoffs, and communication functions. This program shall be conducted year by year.
Article 37
Natural gas utility enterprises shall maintain a normal gas supply throughout the day. Except for
force majeure or emergency, if the need arises to suspend gas supply to all or part of the gas supply
areas for more than 8 hours, the natural gas utility enterprise shall obtain prior approval from the
competent authority of the municipality or county (city) and notify users 3 days before the
suspension. If the suspension of gas supply exceeds 7 days, the enterprise shall obtain approval from
the competent authority of the municipality or county (city) and the said competent authority shall
subsequently notify the central competent authority for reference.
If the supply of gas is suspended due to force majeure or emergency, as stated in the preceding
paragraph, the natural gas utility enterprise shall report to the competent authority of the
municipality or county (city) for reference within 3 days from the occurrence of the force majeure
or emergency.
Article 38
After a natural gas utility enterprise operates its gas supply service, if there is an expansion or
replacement of primary transmission and storage equipment, the enterprise shall, upon completion,
submit the required certificate stated in Subparagraph 4 of Paragraph 1 of Article 10. These
documents shall be submitted to the competent authority of the municipality or county (city), which
shall subsequently forward them to the central competent authority for reference.
Article 39
In the event of a merger and acquisition involving a natural gas utility enterprise and another
enterprise, the acquiring party shall prepare an application specifying the post-merger business
name, responsible person, registered address, paid-in capital, and gas supply areas. This application,
accompanied by the merger operation plan and relevant documents, shall be submitted to the
competent authority of the municipality or county (city), which shall subsequently forward the
documents to the central competent authority for approval. The merger process shall be carried out
following relevant laws and regulations.
Article 40
A natural gas utility enterprise that intends to engage in other businesses shall apply to the
competent authority of the municipality or county (city), which shall subsequently forward the
application to the central competent authority for approval. The other businesses shall not interfere
with their gas supply operations.
The natural gas utility enterprise engaging in other businesses shall establish separate accounting
systems for assets, revenues, costs, profits, and losses.
Article 41
The paid-in capital of a natural gas utility enterprise shall not be less than 35% of the original
acquisition cost of its existing transmission and storage equipment. If the paid-in capital falls below
the required amount, the enterprise shall increase it within 3 months of the occurrence.
Before changing the paid-in capital, the natural gas utility enterprise shall submit a plan to the
competent authority of the municipality or county (city), which shall subsequently forward the plan
to the central competent authority for approval. The capital change matters shall then proceed
following the relevant laws and regulations.
The central competent authority and the competent authority of the municipality or county (city)
may request explanations or send staff to inspect the plan stated in the preceding paragraph. The
natural gas utility enterprise shall not evade, obstruct, or refuse such requests.
The central competent authority shall prescribe the format and information of the plan stated in
Paragraph 2.
Article 42
A natural gas utility enterprise investing in other businesses shall not affect its normal gas supply
operations. Before proceeding with these investments, those who intend to invest in other businesses
shall submit their investment projects and the amount to the competent authority of the municipality
or county (city), which shall subsequently forward them to the central competent authority for
approval.
Article 43
Natural gas utility enterprises shall establish accounting systems following accounting standards and
regulations and create an accounting procedure manual. This manual shall be submitted to the
competent authority of the municipality or county (city), which shall subsequently forward the
manual to the central competent authority for reference. Any revisions to the manual shall also
follow the same process.
The central competent authority shall prescribe the accounting standards and regulations stated in
the preceding paragraph.
Natural gas utility enterprises shall, following the accounting standards and regulations stated in
Paragraph 1, regularly submit financial statements to the competent authority of the municipality or
county (city) and the central competent authority respectively.
If necessary, the central competent authority or the competent authority of the municipality or
county (city) may request explanations or send staff to inspect the financial statements stated in the
preceding paragraph. The natural gas utility enterprise shall not evade, obstruct, or refuse such
requests.
Article 44
Natural gas enterprises shall insure public liability insurance. The insurance amount shall be
prescribed by the central competent authority in conjunction with the Financial Supervisory
Commission, based on the type and scale of the natural gas enterprise.
Chapter 6 Supervision
Article 45
In the event of a natural gas shortage or great fluctuation in prices that might affect the steady
supply of domestic natural gas or national security, the central competent authorities may carry out
regulatory measures that are mandatory regarding natural gas supply and sell price.
The regulations regarding the criteria, timing, procedures, applicable targets, scope, content and
methods of the implementation stated in the preceding paragraph shall be prescribed by the central
competent authority.
Article 46
Natural gas utility enterprises shall establish a gas supply plan annually, specifying the estimated
growth in the number of users, gas supply quantity, length of pipeline installation and areas, and
other relevant information. The plan shall be submitted to the competent authority of the
municipality or county (city), which shall subsequently forward it to the central competent authority
for approval and shall be implemented conscientiously thereafter. When necessary, the competent
authority may conduct inspections of the gas supply plan.
The content, format, submission deadline, and other relevant matters that pertain to the gas supply
plan stated in the preceding paragraph shall be announced by the central competent authority.
Article 47
Natural gas enterprises shall establish a geographic information management system for their
transmission and storage equipment containing relevant data. The information in the geographic
information management system shall be updated in a timely manner and regularly provided to the
competent authority of the municipality or county (city) or the central competent authority. If
necessary, competent authorities at all levels may request natural gas enterprises to update the
information within a specified period.
The central competent authority shall prescribe the format, item, recipients, and deadline for the
geographic information system data stated in the preceding paragraph.
Article 48
Natural gas utility enterprises shall conduct regular inspections of pipelines for their users in the
residential, commercial, and service sectors and record the results. In case of non-conformity, the
enterprise shall notify the user to rectify the issues within a specified period. The same procedure
shall apply when users request inspections.
If a user refuses the inspection stated in the preceding paragraph, and the natural gas utility
enterprise determines that it poses safety concerns, the enterprise may conduct forced inspections,
with the consent of the competent authority of the municipality or county (city), in collaboration
with relevant staff from the related agencies.
Entities other than natural gas utility enterprises are prohibited from conducting the inspections
stated in Paragraph 1. However, natural gas utility enterprises may commission public natural gas
conduit installation enterprises to undertake such inspections.
Staff conducting the inspections stated in Paragraph 1 and those commissioned in the preceding
paragraph shall proactively present their identification documents when conducting such inspections
and related matters.
The items, cycles, operation procedures, billing items, and fee calculation methods for the regular
inspections stated in Paragraph 1 shall be submitted to the competent authority of the municipality
or county (city), which shall subsequently forward the information to the central competent
authority for approval. The specified details shall be included in the operating rules of the natural
gas utility enterprise thereafter. There shall be no fee charged for regular inspections of users in the
residential sector.
When conducting inspections, as stated in Paragraph 1, natural gas utility enterprises shall not
promote or sell merchandise.
Article 49
Natural gas enterprises shall conduct regular inspections of the self-installed gas pipelines for their
users in the industrial, electrical, cogeneration systems, or transportation sectors and record the
results thereof. In non-compliance, the enterprise shall notify the user to rectify the issues within a
specified period.
The items, cycles, fee calculation methods, and operation procedures for the regular inspections
stated in the preceding paragraph shall be submitted to the competent authority of the municipality
or county (city), which shall subsequently forward the information to the central competent
authority for approval.
Article 50
Natural gas enterprises shall conduct regular inspections of their transmission and storage
equipment, record the results, and retain them for a period of 5 years for inspections by the
competent authorities.
The items and operation procedures for the regular inspections stated in the preceding paragraph
shall be submitted to the competent authorities for reference. Any revisions to these items and
procedures shall also follow the same process.
The central competent authority shall inspect the transmission and storage equipment of natural gas
production or import enterprises, while the competent authority of the municipality or county (city)
shall inspect the transmission and storage equipment of natural gas utility enterprises at least once a
year. If necessary, inspections may be conducted at any time.
The competent authorities may delegate or commission subordinate or other agencies to undertake
the inspections stated in the preceding paragraph.
Natural gas enterprises shall not evade, obstruct, or refuse the inspections stated in Paragraphs 1 and
3.
Article 51
When the gas transmission pipelines are affected by corrosion or other phenomena posing safety
risks, the natural gas enterprise shall replace them promptly.
The competent authorities may dispatch staff or entrust professional institutions to inspect natural
gas enterprises' gas transmission pipelines. The enterprises shall not evade, obstruct, or refuse such
inspections.
By October 31 each year, natural gas enterprises shall prepare a maintenance, inspection, and
replacement plan for the gas transmission pipelines for the following year and submit it to the
competent authority of the municipality or county (city), which shall subsequently forward the plan
to the central competent authority for reference.
Article 52
When necessary, the central competent authority may request a natural gas enterprise to explain its
operational status and may dispatch staff or entrust professionals or institutions to verify the actual
operations and relevant data. The enterprise shall not evade, obstruct, or refuse such requests.
Article 53
Natural gas enterprises shall report the quantity of gas supplied, user categories, and number of
users monthly, as well as the operating revenue, expenditures, profits, and losses every six months
to the central competent authority.
The regulations regarding the report items, formats, reporting deadlines, and other matters to be
complied with by a natural gas enterprise stated in the preceding paragraph shall be prescribed by
the central competent authority.
Article 54
Natural gas utility enterprises shall appropriate reserve funds for gas pipeline replacements, deposit
them in a dedicated account at a financial institution, and submit the name of the financial
institution and account details to the competent authority of the municipality or county (city) for
reference. Upon recording, the competent authority of the municipality or county (city) shall
simultaneously notify the central competent authority.
The central competent authority shall prescribe the regulations regarding the appropriation method,
ratio, and utilization of the funds stated in the preceding paragraph.
Article 55
If a natural gas utility enterprise fails to maintain a normal supply of gas throughout the day as
stipulated by Paragraph 1 of Article 37 due to deficiencies in operation or insufficient transmission
and storage equipment, the competent authority of the municipality or county (city) shall order the
enterprise to rectify the situation within a specified period. If the enterprise fails to improve by the
deadline or if the improvements are deemed ineffective, the competent authority of the municipality
or county (city) may request the central competent authority to replace its responsible person or
abolish its gas supply license. When necessary, the central competent authority may coordinate with
other natural gas utility enterprises to take over the operation in advance.
Chapter 7 Penalties
Article 55-1
Those who engage in stealing, damaging, or using other unlawful means to jeopardize the normal
operation of unloading and receiving equipment, storage equipment, regasification equipment,
blending equipment, high-pressure transmission and distribution equipment, or monitoring and
dispatching centers of natural gas import enterprises shall be sentenced to imprisonment for a term
of not less than 1 year and not more than 7 years, and may also be fined up to NT$ 10,000,000.
Those who commit the offenses stated in the preceding paragraph with the intent of harming
national security or social stability shall be sentenced to imprisonment for a term of not less than 3
years and not more than 10 years and may also be fined up to NT$ 50,000,000.
In cases where the circumstances stated in the preceding two paragraphs result in a disaster, the
punishment shall be increased by one-half. If the offense results in death, the offender shall be
sentenced to life imprisonment or imprisonment for a term of not less than 7 years and may be fined
up to NT$ 100,000,000. If the offense results in serious injury, the offender shall be sentenced to
imprisonment for a term of not less than 5 years and not more than 12 years and may also be fined
up to NT$ 80,000,000.
Anyone who, through negligence, damages or otherwise unlawfully impairs the proper functioning
of subsea gas pipelines of Natural Gas Import Enterprises shall be sentenced to imprisonment for
not more than 6 months, short-term detention, or a fine of not more than NT$2,000,000.
Attempted offenses under Paragraphs 1 and 2 shall be subject to punishment.
Any instruments, vessels or other machinery equipment used in committing an offense set forth in
Paragraphs 1 through 3 and the preceding paragraph shall be confiscated, irrespective of whether
they belong to the offender. Upon the finality of a judgment of confiscation, such items may,
considering the specific circumstances of each case, be auctioned, sold, or disposed of through one
of the following methods on a case-by-case basis after approval:
1. Preservation for public use without compensation.
2. Obsoletion.
3. Any other appropriate measures.
Article 55-2
Those who engage in any of the following manners to jeopardize the normal operation of the core
information and communication system of the transmission and storage equipment stated in
Paragraph 1 of the preceding article shall be sentenced to imprisonment for a term of not less than 1
year and not more than 7 years, and may also be fined up to NT$ 10,000,000:
1. Unjustifiably hacking into a computer or related equipment by entering an unauthorized account
username and password, disabling computer security measures, or exploiting computer system
vulnerabilities;
2. Unjustifiably interfering with a computer or related equipment by using computer programs or
other electromagnetic methods;
3. Unjustifiably obtaining, deleting, or altering the electromagnetic records of a computer or related
equipment.
Those who produce computer programs specifically designed to commit the offenses stated in the
preceding paragraph, whether for themselves or for others to commit, shall be subject to the same
punishment.
Those who commit the offenses stated in the preceding two paragraphs with the intent of harming
national security or social stability shall be sentenced to imprisonment for a term of not less than 3
years and not more than 10 years and may also be fined up to NT$ 50,000,000.
In cases where the circumstances stated in the preceding three paragraphs result in a disaster, the
punishment shall be increased by one-half. If the offense results in death, the offender shall be
sentenced to life imprisonment or imprisonment for a term of not less than 7 years and may also be
fined up to NT$ 100,000,000. If the offense results in serious injury, the offender shall be sentenced
to imprisonment for a term of not less than 5 years and not more than 12 years and may also be
fined up to NT$ 80,000,000.
Attempted offenses under Paragraphs 1 to 3 shall be subject to punishment.
Article 56
Those who cause natural gas to leak, resulting in public danger, shall be sentenced to imprisonment
for a term of not more than 5 years, detention, and, alternatively or additionally, a fine ranging from
NT$ 500,000 to 1,000,000.
In cases where the circumstances stated in the preceding paragraph result in death, the offender shall
be sentenced to life imprisonment or imprisonment for a term of not less than 7 years and may also
be fined up to NT$ 10,000,000. If the offense results in serious injury, the offender shall be
sentenced to imprisonment for a term of not less than 3 years and not more than 10 years and may
also be fined up to NT$ 5,000,000.
Those who commit the offense stated in Paragraph 1 due to negligence shall be sentenced to
imprisonment for a term of not more than 2 years, detention, and, alternatively or additionally, a fine
ranging from NT$ 200,000 to 400,000.
If a responsible person, agent, employee, or other staff of a legal person commits any of the crimes
stated in the preceding three paragraphs while performing their duties, in addition to punishing the
individual, the legal person shall also be fined the corresponding amount.
Article 57
Those who operate the business of a natural gas utility enterprise without obtaining a gas supply
license following Paragraph 1 of Article 10 shall be fined ranging from NT$ 3,000,000 to
15,000,000 and be ordered to cease the supply of gas.
Article 58
Natural gas utility enterprises violating Paragraph 2 of Article 8, supplying gas outside the
designated gas supply area without approval, shall be fined NT$ 600,000 to 3,000,000 and be
ordered to rectify the situation within a specified period. Failure to rectify the situation within the
specified period may result in repeated fines until rectification is achieved. In serious circumstances,
the competent authorities may also enforce the removal of transmission and storage equipment
located outside the designated gas supply area.
Article 58-1
Natural gas utility enterprises in violation of Article 30, refusing requests to supply natural gas
within their gas supply areas without justifiable reasons, shall be fined ranging from NT$ 600,000 to
3,000,000 and be ordered to rectify the situation within a specified period. Failure to rectify the
situation within the specified period may result in repeated fines until rectification is achieved. In
serious circumstances, the central competent authority may also abolish its establishment permit and
gas supply license.
Article 59
Natural gas enterprises found in any of the following situations shall be fined from NT$ 500,000 to
2,500,000 and be ordered to rectify the situation within a specified period. Failure to rectify the
situation within the specified period may result in repeated fines until rectification is achieved. In
cases of serious circumstances, the central competent authority may also abolish the establishment
permit and gas supply license of the natural gas utility enterprise:
1. Violating Paragraph 1 of Article 19 by supplying natural gas that does not comply with national
standards;
2. Failing to comply with Paragraph 2 of Article 28 by not providing the content of contracts;
3. Failing to comply with Article 31 by not maintaining a stable gas supply;
4. Failing to comply with Paragraph 1 of Article 32 by not submitting the pricing calculation method
to the competent authority for approval or violating Paragraph 3 by not making adjustments as
ordered by the central competent authority;
5. Failing to comply with Paragraph 2 of Article 33 by not submitting for reference;
6. Failing to comply with Paragraph 1 of Article 34 by arbitrarily adjusting the selling price or basic
fee;
7. Failing to comply with Paragraph 2 of Article 34 by not submitting for approval;
8. Failing to comply with Paragraph 1 of Article 41 by not increasing the paid-in capital amount
within the specified period;
9. Failing to comply with Article 44 by not procuring public liability insurance or by not complying
with the specified insurance amount;
10. Violating the controls imposed following Paragraph 1 of Article 45.
Article 60
Natural gas enterprises found in any of the following situations shall be fined from NT$ 300,000 to
1,500,000 and be ordered to rectify the situation within a specified period. Failure to rectify the
situation within the specified period may result in repeated fines until rectification is achieved. In
cases of serious circumstances, the central competent authority may also abolish the establishment
permit and gas supply license of the natural gas utility enterprise:
1. Violating Paragraph 2 of Article 13 by not installing disaster prevention-related equipment;
2. Violating Paragraph 3 of Article 13 by not installing regional gas supply systems capable of
immediately shutting off gas supply;
3. Violating Paragraph 1 of Article 16 by not taking the necessary measures or improvement
promptly;
4. Failing to comply with Paragraph 1 of Article 18 by not inspecting the pipelines and ensuring
safety before providing supply gas;
5. Failing to comply with Paragraph 2 of Article 19 by not submitting the type or concentration of
added odorant to the competent authority or having the concentrations of added odorant lower than
those submitted for the record;
6. Violating Paragraph 4 of Article 32 by not retaining or providing the required information or
evading, obstructing, or refusing inspections by the competent authority;
7. Violating Paragraph 1 of Article 35 by not charging pipeline equipment fees following the billing
criteria;
8. Violating Paragraph 2 of Article 51 by evading, obstructing, or refusing inspections by the
competent authority.
Article 61
Natural gas enterprises found in any of the following situations shall be fined from NT$ 200,000 to
1,000,000 and be ordered to rectify the situation within a specified period. Failure to rectify the
situation within the specified period may result in repeated fines until rectification is achieved. In
cases of serious circumstances, the central competent authority may also abolish the establishment
permit and gas supply license of the natural gas utility enterprise:
1. Violating Paragraph 1 of Article 14 by not employing a certain number of full-time natural gas
pipeline installation staff;
2. Violating Paragraph 1 of Article 17 by not reporting to the competent authority or not reporting
within deadlines, manners, or procedures as prescribed in Paragraph 2 of Article 17;
3. Violating Paragraph 3 of Article 41, Paragraph 4 of Article 43, Paragraph 5 of Article 50, or
Article 52 by evading, obstructing, or refusing to provide explanations or undergo inspections;
4. Failing to comply with Paragraph 1 of Article 46 by not establishing a gas supply plan, not
submitting the gas supply plan to the competent authority for approval within the prescribed period,
or not implementing the plan diligently as required by the competent authority;
5. Violating Paragraph 1 of Article 50 by not conducting regular inspections or not recording or
retaining inspection results;
6. Violating Paragraph 1 of Article 51 by not promptly replacing gas transmission pipelines;
7. Violating Paragraph 1 of Article 54 by not opening a dedicated account or not setting aside
sufficient reserve funds for gas pipeline replacements.
Article 62
Natural gas enterprises found in any of the following situations shall be fined from NT$ 100,000 to
500,000 and be ordered to rectify the situation within a specified period. Failure to rectify the
situation within the specified period may result in repeated fines until rectification is achieved:
1. Failing to comply with Article 5 by operating without registration;
2. Failing to comply with Paragraph 2 of Article 11 by not applying for the reissuance of the gas
supply license;
3. Failing to comply with Paragraph 1 of Article 15, Paragraph 1 of Article 35, Paragraph 1 of
Article 40, Paragraph 2 of Article 41, Article 42, Paragraph 5 of Article 48, or Paragraph 2 of Article
49 by not submitting for approval;
4. Failing to comply with Paragraph 2 of Article 15, Paragraph 5 of Article 34, Article 38, Paragraph
1 of Article 43, Paragraph 2 of Article 50, Paragraph 3 of Article 51, or Paragraph 1 of Article 54 by
not submitting for reference;
5. Failing to comply with Paragraph 1 of Article 29 by not submitting for approval of the operating
rules or failing to make necessary revisions within the prescribed period after being notified by the
competent authority in accordance with Paragraph 4 of Article 29;
6. Failing to comply with Paragraph 3 of Article 32 by not announcing to the public or reporting in
writing to the central competent authority within the prescribed period;
7. Failing to comply with Article 37 by not obtaining approval, reporting for reference, or notifying
users;
8. Failing to comply with Paragraph 4 of Article 13 or Paragraph 1 of Article 47 by not establishing
a Geographic Information System or not updating data within the prescribed period;
9. Violating Paragraph 1 of Article 48 or Paragraph 1 of Article 49 by not conducting regular
inspections or not recording the inspection results;
10. Failing to comply with Paragraph 1 of Article 53 by not reporting to the competent authority.
Article 63
Those who operate the business of a public natural gas conduit installation enterprise without
obtaining the license with Paragraph 1 of Article 20 shall be fined NT$ 300,000 to 1,500,000. Those
ordered by the competent authorities to cease operations but fail to do so shall be subject to the
same penalties.
Those who fail to employ a certain number of full-time natural gas pipeline installation staff
following Paragraph 2 of Article 20 shall be fined ranging from NT$ 30,000 to 150,000 and be
ordered to rectify the situation within a specified period. Failure to rectify the situation within the
specified period may result in repeated fines until rectification is achieved.
Article 64
In accordance with Articles 55 and 59 to 61, if the gas supply license of a natural gas utility
enterprise is abolished, the licensee shall be returned for cancellation. Failure to return the license
for cancellation will result in direct cancellation by the central competent authority.
Chapter 8 Supplementary Provisions
Article 65
If the gas supply license of a natural gas utility enterprise is abolished following Article 55 and
Articles 59 to 61, the central competent authority may coordinate with other natural gas utility
enterprises to take over the operation. The coordinated enterprise may utilize the existing
transmission and storage equipment to continue the gas supply and provide compensation
accordingly.
Article 66
When a natural gas utility enterprise expands its gas supply area, it shall apply mutatis mutandis to
the provisions specified in Articles 6 to 12.
Article 67
Any natural gas enterprise established and operated following relevant regulations before the
effective date of this Act, which does not conform to the provisions of this Act, shall rectify its
operations following this Act within 1 year from the effective date of this Act.
Article 68
Those who obtained a gas business license following other regulations before the effective date of
this Act and operate the natural gas utility enterprise as defined in this Act shall apply for the
issuance of a provisional gas supply license within 1 year after the effective date of this Act. Failure
to apply within the prescribed period or failure to comply with the provisions of this Act after
application shall result in the announcement of the cancellation of the original coal gas business
license by the central competent authority. Those who continue to supply gas after the cancellation
of their license shall be punished following Article 57.
Natural gas utility enterprises that obtain provisional gas supply licenses per the preceding
paragraph shall apply for a gas supply permit from the central competent authority within 2 years
from the expiration of the one-year deadline specified in Paragraph 1. Failure to obtain the permit
by the deadline shall invalidate the provisional gas supply license upon expiration. In such a case,
the central competent authority may coordinate with other natural gas utility enterprises to take over
the operation. The coordinated enterprise may utilize the existing transmission and storage
equipment to continue the supply of gas and provide compensation accordingly.
The regulations regarding reapplying for a gas supply permit stated in the preceding paragraph shall
be prescribed by the central competent authority.
Article 69
Safety technicians employed by natural gas utility enterprises or full-time technicians employed by
public natural gas conduit installation enterprises before the effective date of this Act may pass a
special technician skills certification test held by the central authority for skills certification to
obtain qualifications as natural gas pipeline installation professionals.
Employed safety technicians or full-time technicians stated in the preceding paragraph who do not
meet the qualifications specified in Paragraph 2 of Article 14 or Paragraph 3 of Article 20 may
continue to be employed by the original enterprise for gas pipeline installation and related safety
maintenance work for up to 5 years after the effective date of this Act.
The regulations regarding the special technician skills certification test stated in Paragraph 1 shall
be prescribed by the central competent authority in conjunction with the central authority for skills
certification.
Article 70
Enterprises supplying propane-air mixture fuel gas for natural gas appliances in designated gas
supply areas, where transmission and storage equipment of natural gas production or import
enterprises have not been established, shall apply mutatis mutandis to the following provisions:
Article 4 regarding the organizational structure of the enterprise; Articles 6 to 12 regarding the
permits for the enterprise; Articles 13 to 19 regarding equipment safety for the enterprise; Articles
21 to 27 regarding land use for the enterprise; Articles 28 to 30, Articles 33 to 35, and Articles 37 to
44 regarding the operation and management of the enterprise; Articles 45 to 55 regarding
supervision of the enterprise; Articles 65 to 69; Violators of these regulations shall be punished
following Article 56 to Article 64.
Article 71
The provisions of the Privately Owned Public Utilities Supervisory Act and the provisions of the
Energy Administration Act for coal gas and natural gas enterprises shall no longer apply from the
effective date of this Act.
Article 72
This Act shall come into effect from the date of promulgation.
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