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To ensure a competitive market, the gas industry in Singapore is structured in a way that fosters competition.
To ensure a competitive electricity market, the gas industry has been restructured since 2008. The gas transportation business is distinct from the competitive sectors of gas import, shipping and retail.
The activities of gas transportation are governed by a set of rules known as the Gas Network Code, ensuring fair and equal access to the onshore gas pipeline network.
In Singapore, there are two distinct gas pipeline networks – one for town gas and another for natural gas.
Town gas, produced by City Energy Pte Ltd, is mainly used by residential and commercial customers for cooking and heating purposes. Natural gas, on the other hand, is mainly used for power generation and industrial feedstock and is imported through licensed gas importers.
PowerGas, as the licensed gas importer, owns the town gas and natural gas pipelines. It is responsible for transporting both types of gas to consumers who purchase gas from gas shippers and retailers.
In the early 2000s, Singapore relied on imported piped natural gas from Indonesia and Malaysia for power generation.
From May 2013, Singapore further diversified its gas sources to importing liquefied natural gas (LNG). The SLNG Terminal, operated by SLNG Corporation, began operations with a jetty, two storage tanks and a throughput capacity of 3.5 million tonnes per annum (mtpa). Situated on a 40-hectare plot on Jurong Island, it was built at a cost of S$1.7 billion.
Today, the terminal operates with two jetties, four storage tanks and a peak send-out capacity of 11 mtpa.
The SLNG Terminal plays a key role in contributing to Singapore's energy security. (Photo courtesy of SLNG Corporation)
Besides diversifying our gas supply sources, EMA licenses term LNG importers to ensure competitive and reliable import and supply of regasified LNG to gas users in Singapore.
Currently, there are four licensed term LNG importers:
To ensure adequate and secure gas supplies going forward, EMA will be appointing one supplier who will aggregate the gas demand for the entire sector for power generation.