Mr Lim Hng Kiang at City Gas' 150th Anniversary Gala Dinner, 29 July 2011

Mr Daniel Ee, Chairman of CitySpring Infrastructure Trust

Mr Tan Ek Kia, Chairman of City Gas

Mr Ng Yong Hwee, CEO of City Gas

CitySpring and City Gas Board of Directors,

Distinguished Guests and Staff of City Gas,

Ladies and gentlemen,

Introduction

I am happy to join you this evening to celebrate the 150th anniversary of City Gas. City Gas has served us for generations.Once known as Singapore Gas Company in 1861, it started as a gas provider for street lamps and has since grown into an integral supplier of gas to households and industries.With the rising importance of gas as a source of fuel for households and businesses, the number of customers for City Gas has grown from about 500 in the early 1900s to more than 600,000 today.

Currently, town gas is used by more than 60 per cent of Singapore households. There is also an increasing demand for town gas from a range of commercial and industrial players, such as hawker centres, shopping centres, hotels and hospitals.

City Gas’ development as an energy provider reflects the evolution of the energy landscape in Singapore as we embrace new technologies and restructure our energy markets.Until the mid-1990s, the electricity and gas sectors in Singapore were vertically integrated and government-owned. The Energy Market Authority has since restructured these sectors and introduced competition into the energy market.Competition have benefitted consumers through better service quality and cost efficiency.

To better address evolving consumer needs, City Gas has constantly pursued innovative ways to boost their consumer offerings over the years. In enhancing its capabilities to improve the safety and reliability of its gas supply, City Gas provides a 24-hour call centre service for consumers to check for gas leaks or to repair faulty appliances.Five years ago, City Gas also started a service training programme for its front-line staff and contractors, to equip them with skills and knowledge to provide better customer service.

They have also embarked on technological developments to enhance its operations.In 2006, City Gas converted to using natural gas as its primary feedstock to produce town gas.This is cleaner and more efficient compared to its previous method of production using naphtha.

With its experience as Singapore’s town gas provider, City Gas is well-positioned to provide consumers with cost-efficient energy to power their needs. Moving forward, City Gas must continue to invest in technological innovations and productivity improvements, so as to provide even better quality service at more competitive prices for its customers.

Enhancing Energy Security and New Business Opportunities in LNG

Earlier this year, the International Energy Agency (IEA) estimated that the global demand for natural gas will overtake coal by 2030, and gas will account for 25 per cent of the global energy mix by 2035. The IEA also highlighted that new discoveries of unconventional gas resources will boost the supply of natural gas.

Singapore is on track to capture such opportunities. Today, about 80 per cent of our electricity is generated by gas-fired turbines. To enhance our energy security, Singapore is building our first LNG Terminal at Jurong Island. Through the close cooperation between the Energy Market Authority (EMA), Singapore LNG Corporation (SLNG) and the industry, the terminal is on track to commence operations by the second quarter of 2013. 

The LNG Terminal will offer a diversification of our sources of natural gas and provide Singapore with more options. With the terminal, we have the choice of either buying piped natural gas (PNG) from our neighbours, or importing LNG from suppliers in other parts of the world. Similar to the power generation companies and other industrial users, City Gas will benefit from the security of gas supply that the LNG terminal brings. City Gas must continue their productivity drive to capitalise on opportunities that the LNG terminal will bring.

Conclusion

In conclusion, I will like to extend my warmest congratulations to City Gas on your 150th Anniversary. You have come far and I wish you many more successful years ahead.

Thank you.