Singapore to set up single gas buyer for power generation sector in 2024

SINGAPORE will set up an entity in 2024 as a single buyer of natural gas for the power-generation sector in order to create a more stable and secure energy system, Minister for Trade and Industry Gan Kim Yong said on Monday (Oct 23).

This “more deliberate and coordinated” centralised approach is a long-term solution after the staggering spikes in Singapore’s spot electricity prices in recent years exposed weaknesses in the country’s market-driven procurement processes.

Under the framework, a single entity will aggregate gas demand from Singapore’s power-generation companies (gencos). That entity then imports the gas required, and sells that gas to the gencos.