Issue 5 | JANUARY 2013
Minister S Iswaran unveils plans for an electricity futures market, 4th LNG Tank, among others

Mr S Iswaran, Second Minister for Home Affairs and Trade & Industry, kicked off the Singapore Energy Summit with several key announcements on domestic energy developments.

Mr Iswaran, who is also Minister in the Prime Minister’s Office, announced the launch of a public consultation on the possible introduction of Demand Response as part of the national electricity market. The Energy Market Authority (EMA), in launching the consultation, will seek views from industry stakeholders on the proposed model for implementing a demand response programme in Singapore (including market rules and mechanisms governing the programme and participation of demand response aggregators) to determine the most appropriate approach.

He also spoke on the launch of an electricity futures market consultation, adding that similar markets have already been established in New Zealand, Australia and the UK. He explained: “Independent retailers will be able to participate in the market by purchasing futures contracts, and in turn offering competitive packages to consumers. Consumers will also be able to hedge their risks by locking in longer-term prices, while generation companies stand to gain by using the futures contracts to hedge against their fuel price and operational risks during plant outages.”

In launching the Singapore Energy Award, Mr Iswaran said, “The energy sector is diverse and there is scope for individuals, organisations and companies, big and small, to contribute to the dynamism of our energy ecosystem by demonstrating excellence in industry leadership, capability development and technology”, he told audiences. The inaugural award will be handed out at SIEW 2013.

At the Gas Asia Summit which was held for the first time at SIEW and where he delivered the keynote address, Mr Iswaran revealed that Singapore would be building a fourth LNG tank, boosting the capacity of the LNG terminal on Jurong Island to about 9Mtpa. In explaining the city-state’s diversified energy strategy, he said that “With the development of the terminal, Singapore will be well-placed to diversify our gas supply and tap on the global LNG market. With this initiative, we also hope to catalyse the development of an ecosystem of businesses, such as LNG trading, break-bulk services and LNG bunkering, which would bode well for the emergence of a more vibrant LNG industry in Singapore and in Asia”, he added.

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