The Energy Market Authority (EMA) is pleased to announce that it has signed a LNG Terminal Agreement (LTA) with PowerGas Limited (a member of the Singapore Power Group) on 28 April 2008 confirming its designation as the developer of Singapore’s first LNG import terminal.

The LNG terminal, which will be located on reclaimed land at Jurong Island, will have an initial send-out capacity of 3 million tones per annum (Mtpa), with potential for expansion to 6 Mtpa. It is expected to be ready for start up in early 2012 to coincide with the first deliveries of LNG to Singapore.

PowerGas has already commenced the design and engineering work to prepare the tender specifications for the construction and commissioning of the LNG terminal.

Going forward, PowerGas and BG Asia Pacific Pte Limited (BG), which was recently appointed by EMA as the LNG Aggregator for Singapore, will develop a Terminal Use Agreement which will define the technical, operational and commercial arrangements for the use of the LNG terminal.

EMA welcomes the execution of the LTA with PowerGas as the LNG terminal owner. This, together with BG’s appointment as the LNG Aggregator, moves Singapore’s plans to import LNG into the project implementation stage.

28 April 2008

Appendix 1

Note to Editors

Background of LNG in Singapore

On 7 August 2006, Mr Lim Hng Kiang, Minister for Trade and Industry announced that Singapore would build an LNG terminal to import LNG to diversify its sources of energy and to meet Singapore's rising future demand for energy.

On 4 September 2007, Mr S Iswaran, Senior Minister of State for Trade and Industry announced that EMA had designated PowerGas to build, own and operate the LNG import terminal.

On 18 April 2008, Mr Khoo Chin Hean, Chief Executive, Energy Market Authority, announced the appointment of BG Asia Pacific Pte Limited (BG) as the Liquefied Natural Gas (LNG) Aggregator for Singapore. In this role, BG will aggregate demand for regasified LNG from all end-users of gas in Singapore and procure LNG supply for these end-users for up to three (3) million tonnes per annum (Mtpa) starting in early 2012.

About Energy Market Authority (EMA)
EMA was established in the 2001 to forge a secure, long-term electricity industry that thrives on healthy competition. New market structures have been created to promote competition in the electricity and piped gas industries. EMA will also continue to promote cost competitive outcomes for consumers by ensuring a level playing field for competition within the electricity and piped gas industries.

About PowerGas Limited, Appointed Singapore LNG Terminal Owner and Operator
PowerGas Ltd, a member of Singapore Power, is the gas transporter and system operator in Singapore. It owns and operates gas transmission and distribution assets including two onshore receiving facilities for Sumatra gas and Malaysian gas, and 2,800 km of pipelines. It transports natural gas to power generation companies and industrial customers, and town gas to commercial and residential customers.