EMA had on 26 Dec 2006 issued an information paper on the Policy on Gas Import Control (“Policy”), explaining the controls on the importation of new piped natural gas (“PNG”), which took effect from 21 Aug 20061. The intent of the Policy was to enable the build-up of demand for liquefied natural gas (“LNG”) by controlling the import of new PNG. Subsequently, EMA had on 2 Mar 2011 issued an Addendum to Information Paper on Policy on Gas Import Control (“Addendum”), setting out the updates to the Policy and clarifying the use of PNG under various circumstances.

BG Singapore Gas Marketing Pte Ltd (the LNG Aggregator) expects to achieve 3 Mtpa of LNG sales by 2012 or 2013, EMA has commenced a review of the Policy. To allow for more flexibility in the use of PNG, EMA intends to remove the distinction between Existing and New PNG so that any PNG imports, if approved by EMA in writing, can be used for commercial generation, non-commercial generation and other uses. This would be implemented on a date to be determined by EMA after LNG import reaches 3 Mtpa or in 2018, whichever is earlier. In addition, EMA had previously in approving the import of New PNG for non-commercial generation and other uses imposed restrictions on reselling or transferring of such New PNG imports. It is proposed that such restrictions be removed.

Going forward, any company that wants to import PNG into Singapore will still need to be authorised to do so under a gas importer licence issued by EMA. Companies are also required to seek EMA’s written approval on the finalised terms and conditions of new PNG GSAs before they are allowed to import the PNG into Singapore. In assessing whether to approve new PNG GSAs, EMA will be guided by key considerations such as whether the new PNG supplies would positively contribute towards Singapore’s energy security and gas price competitiveness. Upon approval, a copy of the executed GSA must be filed with EMA. EMA invites comments and feedback on the review of the existing Policy on Gas Import Control.