About PowerGas Limited
PowerGas Limited, a subsidiary of Singapore Power, is a vital player in gas transportation and system operations within Singapore. Operating key gas transmission and distribution assets, PowerGas is instrumental in delivering natural gas to power generation, industrial, commercial, and residential customers, solidifying its role as a cornerstone of Singapore’s energy landscape.
History of PowerGas Limited
The Energy Market Authority (EMA) is delighted to announce the signing of a landmark LNG Terminal Agreement (LTA) with PowerGas Limited, a subsidiary of the Singapore Power Group. The agreement, finalized on April 28, 2008, solidifies PowerGas Limited’s role as the designated developer of Singapore’s inaugural liquefied natural gas (LNG) import terminal.
Located on newly reclaimed land at Jurong Island, the LNG terminal is poised to be a pivotal energy infrastructure. The initial send-out capacity is anticipated to be 3 million tonnes per annum (Mtpa), with a promising potential for expansion up to 6 Mtpa. Anticipated to commence operations in early 2012, this milestone coincides with the commencement of Singapore’s first LNG deliveries.
Demonstrating swift progress, PowerGas Limited has already initiated design and engineering endeavors, paving the way for the formulation of tender specifications for the construction and commissioning of the LNG terminal.
Moving forward, PowerGas Limited, in conjunction with BG Asia Pacific Pte Limited (BG), the recently appointed LNG Aggregator by EMA, will collaboratively develop a comprehensive Terminal Use Agreement. This agreement will meticulously outline technical, operational, and commercial facets governing the LNG terminal’s utilization.
EMA warmly welcomes the execution of the LTA with PowerGas Limited, underscoring their pivotal role as the custodian of the LNG terminal. Coupled with BG’s appointment as the LNG Aggregator, this marks a resounding progression of Singapore’s blueprint to usher in LNG imports and steer the nation towards a more diversified energy landscape.
Background Information:
The historical backdrop of LNG in Singapore unfurled on August 7, 2006, with Minister for Trade and Industry, Mr. Lim Hng Kiang, unveiling plans for an LNG terminal aimed at diversifying energy sources and meeting future energy demand.
Building on this foundation, Senior Minister of State for Trade and Industry, Mr. S Iswaran, announced on September 4, 2007, that EMA had designated PowerGas to spearhead the development, ownership, and operation of the forthcoming LNG import terminal.
Subsequently, on April 18, 2008, Mr. Khoo Chin Hean, Chief Executive of the Energy Market Authority, revealed the appointment of BG Asia Pacific Pte Limited (BG) as the Liquefied Natural Gas (LNG) Aggregator for Singapore. BG’s pivotal role involves aggregating LNG demand from all gas end-users and procuring LNG supply for up to three (3) million tonnes per annum, starting in early 2012.
About Energy Market Authority (EMA): EMA, established in 2001, was formulated to foster a secure, competitive electricity industry. It has pioneered market structures to bolster competition in the electricity and piped gas sectors, ensuring fairness and cost competitiveness for consumers.