SINGAPORE: The Government will liberalise the gas market to
allow open access and to support new entrants.
Senior Minister of State for Trade and Industry Dr Vivian
Balakrishnan said this at the opening of the Asia Power Conference
on Thursday.
He said that while governments cannot totally eliminate power
failures, they can take measures to ensure the probability of
failure stays low.
Liberalising the gas market will encourage more sources of gas
supply into the energy system.
The resultant competitive pressures should also spur players to do
better on both price and reliability.
Dr Vivian also revealed that a high-level committee, set up after
last June's major power failure to review Singapore's electricity
and gas systems, has completed its work and will be announcing its
findings soon.
Meantime, the Energy Market Authority and the industry players have
taken steps to enhance the reliability of the country's energy
system.
Dr Vivian said the 29 June power failure has highlighted the
question of whether Singapore is relying too much on one source of
fuel to generate electricity, and whether it should diversify our
fuel types and sources.
So one significant measure is for generation companies to be fed by
gas from two sources.
He said two of the three major power stations are already supported
by two sources of gas.
The third plans to have its second pipeline by the middle of this
year.
Dr Vivian said the government is also reviewing what additional
investment is needed to enhance the system.
It is currently studying the economics of having a liquefied
natural gas (LNG) facility over the longer term.
If the decision is to proceed, the target would be to have the LNG
import terminal operational and ready to receive LNG by 2012.
Dr Vivian also said the government will continuously review and
improve the contingency measures in place, while allowing the
competitive energy market to drive production, consumption and
investment decisions as far as possible. - CNA