Singapore has launched Singapore GasCo, a fully government-owned entity established to centralise the procurement and supply of natural gas for the country’s power sector. This move aims to ensure a stable, secure, and cost-competitive supply of natural gas, which currently accounts for about 95% of Singapore’s electricity generation. By aggregating demand from power generation companies, Singapore GasCo will be able to negotiate more favourable contracting terms, procure gas from diverse sources, and enter into longer-term contracts to stabilise supply and prices.
Previously, individual power generation companies managed their own gas procurement, which led to supply vulnerabilities and price volatility, especially evident during the global energy crisis of 2021-2022, when companies cut back on gas purchases, causing sharp swings in electricity prices. The centralised approach is expected to mitigate such risks and support Singapore’s energy transition towards net-zero emissions by 2050, as natural gas will remain a key part of the energy mix for the foreseeable future.
Singapore GasCo will be led by Mr. Alan Heng, who brings over 37 years of experience in the energy sector, including as former Group CEO of Pavilion Energy and senior roles at ExxonMobil. The company’s creation is seen as a major milestone in Singapore’s energy strategy, supporting a secure and resilient power system as the nation navigates the challenges of energy transition and supply security.
Singapore GasCo is expected to begin procuring liquefied natural gas (LNG) from 2026, further diversifying the country’s energy sources and reinforcing its role in maintaining price and supply stability for the power sector.
(Source: The Straits Times)
