SINGAPORE: The Singapore government says it will create an entity in 2024 to centrally purchase and manage natural gas supply for the power sector as it seeks to boost its energy security.

The city-state relies on gas to generate 95% of its electricity. The measures are to safeguard the country’s energy security after surging global gas prices roiled the city-state’s electricity market in recent years.

“Moving forward, we will take a more deliberate and oriented approach to gas procurement,” Trade and Industry Minister Gan Kim Yong said in a conference during Singapore International Energy Week.

“This will create greater economies of scale and allow us to negotiate more favourable gas-contracting terms, procure gas from diverse sources to reduce concentration risk, and enter into longer-term gas contracts to provide more stable prices and supplies,” Gan said.

The Trade and Industry Ministry and the Energy Market Authority (EMA) will create the entity, to be known as Gasco, in 2024 to aggregate gas demand from power generators and purchase additional volumes when electricity demand exceeds expectations, EMA said in a statement.

This will apply to all future gas demand from the power sector, including gas contract renewals, it said.

Separately, EMA and the Maritime and Port Authority of Singapore will also select a project developer to provide a low or zero-carbon ammonia solution for power generation and bunkering on Jurong Island, Gan said.

 - Reuters