Singapore Launches GasCo to Centralise Natural Gas Procurement for Power Sector
Singapore has established a new government-owned entity, Singapore GasCo Pte Ltd (Singapore GasCo), to centralise the procurement and supply of natural gas for the nation’s power sector. This move aims to enhance energy security, improve cost efficiency, and support Singapore’s broader energy transition goals.
Natural gas currently accounts for approximately 95% of Singapore’s electricity generation, largely sourced through pipelines from Malaysia and Indonesia. However, many existing contracts are set to expire between 2018 and 2029, with uncertain renewal prospects. As Singapore advances toward its target of net-zero emissions by 2050, natural gas remains a critical component in ensuring a stable and secure energy supply.
The Energy Market Authority (EMA) and Singapore GasCo have stated that the centralisation of gas procurement will allow the country to benefit from economies of scale, negotiate more favourable terms, and enter into longer-term contracts. This will help diversify gas sources, stabilise pricing, and secure a more resilient energy supply amid global uncertainties.
The formation of Singapore GasCo was first announced in 2023 by Minister for Trade and Industry, Mr Gan Kim Yong, in response to the global energy crisis of 2022, which exposed vulnerabilities in energy supply chains and led to sharp increases in electricity prices. That crisis underscored the importance of a coordinated approach to energy procurement and supply.
Mr Alan Heng has been appointed as the Chief Executive Officer of Singapore GasCo. He brings over 37 years of experience in the energy industry, having previously served as Group CEO of Pavilion Energy and held senior roles at ExxonMobil.
The launch of Singapore GasCo marks a significant milestone in Singapore’s energy transition journey. As a fully government-owned entity, it will play a pivotal role in building a secure, resilient, and cost-competitive power system, while supporting Singapore’s long-term sustainability objectives.
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