Singapore Launches GasCo to Strengthen Energy Security and Support Energy Diversification
Singapore has officially launched Singapore GasCo, a fully government-owned entity designed to centralize the procurement and supply of natural gas for the power sector. The move aims to enhance energy security and stabilize prices by reaping economies of scale, negotiating better contract terms, and diversifying sources of natural gas—both piped and liquefied, according to a joint statement by the Energy Market Authority (EMA) and Singapore GasCo on May 7th. With natural gas currently accounting for approximately 95% of Singapore’s electricity generation, the establishment of GasCo marks a strategic step in ensuring long-term energy resilience. The new entity will also pursue longer-term contracts to mitigate market volatility, such as that experienced during the global energy crisis of 2022, when gas prices spiked, resulting in individual companies cutting down on their procurement of gas, causing large swings in wholesale electricity prices.
The Energy Market Authority (EMA) emphasized that natural gas will remain a critical component in Singapore’s energy mix as the country advances its transition to net-zero emissions by 2050. Alan Heng, the former CEO of Pavilion Energy and a veteran with over 37 years in the energy sector, has been appointed as GasCo’s inaugural Chief Executive Officer. As existing gas contracts with Malaysia and Indonesia are set to expire between 2018 and 2029, with no guarantee of renewal, GasCo is expected to play a pivotal role in securing new agreements and mitigating supply risks. U.S. companies riding the wave of the Trump Administration’s liberalization of LNG exportation are already helping to fill this niche elsewhere in ASEAN, with Singapore now presenting itself as an additional partner. GasCo’s establishment signals Singapore’s commitment to a reliable, affordable, and sustainable energy future amid evolving global challenges, utilizing new and existing agreements.
