SINGAPORE, May 8 (Xinhua) -- Singapore has established a fully government-owned company to centralize the procurement and supply of natural gas for power generation companies.
The new entity, Singapore GasCo, was created to leverage economies of scale, negotiate more favorable gas contracting terms, diversify sources of natural gas, and secure longer-term contracts to provide more stable supply and prices, according to a joint statement issued Wednesday by the Energy Market Authority and Singapore GasCo.
Natural gas currently accounts for around 95 percent of Singapore's electricity generation, the statement noted.
"As we push ahead with Singapore's energy transition towards net-zero by 2050, natural gas will continue to play a crucial role in safeguarding our energy security and supporting an orderly transition," it said.
Prior to the formation of Singapore GasCo, power generation companies determined individually the volume and duration of gas purchases. This fragmented approach meant there was no assurance that Singapore would consistently have sufficient gas to meet its electricity needs, local media reported. ■
