More than 90% of Singapore’s electricity is generated using imported natural gas. Before the LNG Terminal came into being, Singapore’s only option was to import natural gas via pipelines from Malaysia and Indonesia.
The LNG Terminal is therefore critical to Singapore’s energy security, as it allows the country to import natural gas from just about anywhere in the world.
LNG is currently the most practical option for Singapore in terms of balancing between security of supply, cost effectiveness and environmental friendliness
LNG has the potential to become a major economic driver for Singapore. Leveraging on its strategic geographic location and excellent economic infrastructure, Singapore can become a major player by facilitating global LNG flow and establishing itself as a LNG Trading Hub for the region.
Singapore has two separate gas pipeline networks:
Town Gas Network
Natural Gas Network
Town gas, which is used for cooking and water heating by residential and commercial customers, is manufactured from natural gas. The town gas pipeline network serves about 50% of the households in Singapore.