A government-owned entity, Singapore GasCo (Singapore GasCo), has been established to centralise the procurement and supply of natural gas to the power sector in Singapore, says the Energy Market Authority (EMA).
As the country pushes ahead to transition towards net zero by 2050, natural gas, which accounts for 95% of Singapore's electricity generation, will continue to play a crucial role in safeguarding our energy security and supporting an orderly transition.
By centralising procurement, Singapore GasCo aims to reap economies of scale and negotiate for more favourable gas contracting terms, procure natural gas from diverse sources as well as enter into longer-term gas contracts to provide more stable supply and prices.
Gas is imported from Malaysia and Indonesia by various power-generating companies such as Sembcorp Industriesand Keppel.
EMA says that Singapore GasCo "will play a key role to support a secure, resilient and cost-competitive power system as we navigate the energy transition towards a more sustainable future".
Alan Heng, previously running Pavilion Energy, has been named CEO of Singapore GasCo. Prior to Pavilion Energy, which is now a unit of energy giant Shell, Heng spent 23 years with another energy giant ExxonMobil in various planning, operations and marketing roles.
