SINGAPORE: Singapore will centralise natural gas purchases in a bid to improve the stability and security of its power sector.
The nation will aggregate demand from generating companies, which will create economies of scale and allow Singapore to negotiate more favourable gas contracting terms and procure fuel from diverse sources, minister for trade & industry Gan Kim Yong said at the Singapore International Energy Week conference.
“This is a fundamental shift in our approach toward gas procurement,” he said. “We believe that this is necessary to create a more stable and secure power system that will ultimately benefit the consumers and also the gencos themselves.”
Singapore uses natural gas for 95% of its power generation, and has previously given LNG procurement to firms including Pavilion Energy Pte and Shell Plc. The Energy Market Authority will consult on the details of the plans in the coming months, Gan said.