Natural gas is a key energy resource for Singapore. About 95 percent of electricity is generated using natural gas here. Given such a heavy reliance on the fuel, lowering the barriers for the buying and selling of gas would benefit the industry and consumers.
One such benefit from developing a secondary gas trading market is that it allows gas industry players to trade gas without going through a typically lengthy negotiation process. For example, anonymous trades could be carried out through an exchange, similar to how electricity is traded in Singapore today.
To map out the development of this secondary gas market, EMA released an industry consultation paper to gather views and ideas. The industry consultation has since closed on 11 December 2015.
EMA aims to set up an Industry Working Group by the second quarter of 2016 to assess the industry feedback received.