Oral reply to PQs on Singapore GasCo

Mr Abdul Muhaimin Abdul Malik: To ask the Deputy Prime Minister and Minister for Trade and Industry whether the Ministry has any information on (i) whether Singapore GasCo will be building spot trading capabilities to manage price volatility of liquefied natural gas, or any other alternative mechanisms to buffer against short-term price volatility and (ii) whether Singapore GasCo will collaborate with financial institutions or commodity exchanges to develop such capabilities.

Mr Abdul Muhaimin Abdul Malik: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) whether the Ministry will ensure that Singapore GasCo places safeguards during procurement to prevent an overreliance on any single liquefied natural gas (LNG) source; and (b) how will the Ministry ensure that Singapore GasCo’s procurement of LNG does not expose Singapore to reputational, financial, or legal risks arising from sanctioned entities or jurisdictions.

Oral Answer (to be attributed to the Minister-in-Charge of Energy, Science & Technology Dr Tan See Leng)

1.       Mr Speaker, may I have your permission to answer PQs 14 and 15 on today’s Order Paper?

2.       Singapore GasCo is a Government-owned entity that was established in April this year to centralise the procurement of natural gas for the power sector in Singapore. GasCo will construct and maintain a diversified and resilient gas supply portfolio to enhance gas supply security and mitigate gas price volatility. In addition, GasCo will put in place systems and processes to ensure that it does not procure natural gas from sanctioned entities or jurisdictions.

3.       We are unable to go into details on GasCo’s procurement approach owing to commercial sensitivities.