Piped Natural Gas and Liquefied Natural Gas

About 95 per cent of Singapore’s electricity is currently generated using natural gas, up from just 26 per cent back in 2001, when oil was the preferred fuel.

As Singapore’s energy market was liberalised, many power generation companies turned to more efficient gas turbines. Refineries and petrochemical companies also now use natural gas for their operations.

Traditionally, most of Singapore’s supply of natural gas come from pipelines that connect from Indonesia and Malaysia. This is set to change as liquid natural gas (LNG), a liquefied version of the fuel, starts to play a bigger part in power generation in the coming years.

LNG can be transported more practically by specially designed ships and expands Singapore’s options in sourcing for the fuel it needs for its energy requirements.

Artist Impression of the LNG Terminal
Image courtesy of Singapore LNG Corporation Pte Ltd (SLNG)

In 2006, in a bid to diversify and secure the country’s energy sources, the Singapore government announced plans to build an LNG terminal that can be used to store LNG for local use and re-export the fuel to regional markets. The LNG terminal commenced operations on 7 May 2013.

The LNG for local use is sent to re-gasifiers which turn the liquid into its gaseous state for distribution via the pipeline system.

To enable the LNG demand to build up, the Singapore government introduced import controls for piped natural gas in 2006.

Companies are not allowed to import piped natural gas for new commercial generation capacity. A review of the policy will be conducted with the industry when LNG imports reach 3Mtpa or in the year 2018, whichever is earlier.


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