{"id":10454,"date":"2023-10-23T14:01:09","date_gmt":"2023-10-23T06:01:09","guid":{"rendered":"https:\/\/daily.sg\/?p=10454"},"modified":"2023-10-23T20:13:36","modified_gmt":"2023-10-23T12:13:36","slug":"singapore-aims-for-stable-electricity-price-with-centralised-gas-buy","status":"publish","type":"post","link":"https:\/\/daily.sg\/2023\/10\/singapore-aims-for-stable-electricity-price-with-centralised-gas-buy\/","title":{"rendered":"Singapore Aims for Stable Electricity Price with Centralised Gas Buy!"},"content":{"rendered":"\n<ol>\n<li><b>The Ministry of Trade and Industry (MTI) and the Energy Market Authority (EMA) are creating a centralised gas procurement framework for Singapore&#8217;s power sector.<\/b><\/li>\n\n\n\n<li><b>An entity named Gasco will be established to manage and unify the gas needs of power generation companies.<\/b><\/li>\n\n\n\n<li><b>The new procurement plan aims to improve the negotiation power, economy of scale, diversify gas sources, and guarantee stable prices and supply.<\/b><\/li>\n<\/ol>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"ast-oembed-container \" style=\"height: 100%;\"><iframe loading=\"lazy\" title=\"MTI-EMAs Centralised Gas Buy Stabilise Your Electricity Prices (23 October 2023)\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/17_DqHvCGhE?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Understanding the Current Gas Procurement Framework<\/h2>\n\n\n\n<p>Singapore is a small country with big power needs.<\/p>\n\n\n\n<p>Natural gas powers our homes and businesses. It&#8217;s crucial to our economy.<\/p>\n\n\n\n<p>Right now, power companies buy gas on their own.<\/p>\n\n\n\n<p>But this system has flaws.<\/p>\n\n\n\n<p>When gas prices soar, companies cut back on contracts.<\/p>\n\n\n\n<p>That leads to big swings in wholesale electricity prices.<\/p>\n\n\n\n<p>It&#8217;s a fragile system in an uncertain market.<\/p>\n\n\n\n<p>And when each company is looking out for number one, the results can let us all down.<\/p>\n\n\n\n<p>Enter Gasco, a new approach to gas procurement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Role of Ministry of Trade and Industry and Energy Market Authority<\/h2>\n\n\n\n<p>The MTI and EMA are shaking things up.<\/p>\n\n\n\n<p>In October 2022, Minister for Trade and Industry Gan Kim Yong unveiled new plans.<\/p>\n\n\n\n<p>Coining a new gas procurement framework, Gan set out to modernise and secure our energy market.<\/p>\n\n\n\n<p>But why? Because the stakes are high.<\/p>\n\n\n\n<p>A whopping 95% of Singapore&#8217;s electricity is generated by natural gas.<\/p>\n\n\n\n<p>&#8220;Having secured and reliable supplies of natural gas is existential for Singapore,&#8221; said Minister Gan.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Introduction of Gasco and Centralised Procurement Approach<\/h2>\n\n\n\n<p>Gasco is set to change the game.<\/p>\n\n\n\n<p>Established by the MTI and EMA, its role is clear &#8211; centralise and collate gas demand from power generation companies.<\/p>\n\n\n\n<p>If the demand for electricity goes up, Gasco will buy more gas.<\/p>\n\n\n\n<p>Not just for new orders. This system will govern all gas demand, including contract renewals.<\/p>\n\n\n\n<p>But what about those companies with existing gas contracts?<\/p>\n\n\n\n<p>They can keep them. For now.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Benefits of the Centralised Gas Procurement Framework<\/h2>\n\n\n\n<p>Centralisation brings strengths many didn&#8217;t know we were missing.<\/p>\n\n\n\n<p>Think negotiating power, economies of scale, diverse gas sources.<\/p>\n\n\n\n<p>Add stable prices and a secure supply. It&#8217;s a dream come true for Singapore&#8217;s energy market.<\/p>\n\n\n\n<p>No more large swings in wholesale electricity prices.<\/p>\n\n\n\n<p>According to EMA, &#8220;the centralised gas procurement framework will complement the other guide rails introduced and improve the security and resilience of the power sector&#8217;s natural gas supplies.&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Effects on the Greater Gas Industry and Other Stakeholders<\/h2>\n\n\n\n<p>But what does centralised gas procurement mean for others in the industry?<\/p>\n\n\n\n<p>Well, for one, licensed importers can still cater to other industrial gas customers.<\/p>\n\n\n\n<p>And it&#8217;s no small beans. We&#8217;re talking industrial-sized orders here.<\/p>\n\n\n\n<p>But with Gasco promising benefits like never before, many will be asking: What&#8217;s next for Singapore&#8217;s gas market?<\/p>\n\n\n\n<p>How will centralization impact our relations with external gas markets?<\/p>\n\n\n\n<p>And is this the solution to secure, reliable energy supplies we&#8217;ve been waiting for?<\/p>\n\n\n\n<p>As they say, the proof is in the pudding.<\/p>\n\n\n\n<p>Or in this case, the gas.<\/p>\n\n\n\n<p>We&#8217;ll be watching.<\/p>\n\n\n\n<p>And so will you.<\/p>\n\n\n\n<p>Given the high stakes and potential massive benefits, can Gasco deliver on its promises? Stay in touch with us at Daily.SG for all the latest updates.<\/p>\n\n\n\n<p>Source: <a href=\"https:\/\/www.ema.gov.sg\/\" target=\"_blank\" rel=\"noopener\">EMA<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Explore the revolutionary Centralised Gas Procurement system by Gasco and how it aims to secure Stable Electricity Prices in Singapore. Join us for updates!<\/p>\n","protected":false},"author":8,"featured_media":10455,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[15,437],"tags":[465,1492,1490,1491],"_links":{"self":[{"href":"https:\/\/daily.sg\/wp-json\/wp\/v2\/posts\/10454"}],"collection":[{"href":"https:\/\/daily.sg\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/daily.sg\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/daily.sg\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/daily.sg\/wp-json\/wp\/v2\/comments?post=10454"}],"version-history":[{"count":2,"href":"https:\/\/daily.sg\/wp-json\/wp\/v2\/posts\/10454\/revisions"}],"predecessor-version":[{"id":10484,"href":"https:\/\/daily.sg\/wp-json\/wp\/v2\/posts\/10454\/revisions\/10484"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/daily.sg\/wp-json\/wp\/v2\/media\/10455"}],"wp:attachment":[{"href":"https:\/\/daily.sg\/wp-json\/wp\/v2\/media?parent=10454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/daily.sg\/wp-json\/wp\/v2\/categories?post=10454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/daily.sg\/wp-json\/wp\/v2\/tags?post=10454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}