Gas Supply Agreement Singapore
5. To further enhance our energy security, we have also increased the capacity of the LNG terminal prior to demand and have provided unused capacity to accommodate potential disruptions to our natural gas supply. The terminal now has a maximum flow capacity of 11 million tonnes per year, sufficient to meet demand for the near future. The government will continue to plan our next phase of LNG infrastructure development. We are currently exploring several options to see who best meets our long-term LNG requirements and further improve our energy security. In 2019, 95.3% of Singapore`s electricity generation came from natural gas and a large amount of gas is also used to supply the industrial, transport and urban gas sectors. In addition, there are similar concerns about Malaysia`s gas supply to Singapore regarding domestic prices and domestic demand commitments. There is no certainty as to the renewal of expiring contracts. Similarly, the gas deficit on the Malaysian peninsula continues to worsen and changes in price mechanisms are expected to complicate contract renewal. The LNG terminal will eventually be expanded to seven storage tanks with a capacity of 15 million metres per year. Until now, overcapacity has been used for independent commercial activities, but it is necessary to replace the reduced supply of pipelines.
Singapore will move towards LNG in the coming years to cover most of its gas needs, as contracts for the supply of natural gas and natural gas will be strengthened and a new floating restricting facility is planned for the next ten years. 2. As a small country without natural resources, Singapore imports almost all of its energy needs. This makes us vulnerable to supply risks. Prior to 2013, we were fully dependent on Malaysia and Indonesia for our natural gas supply through pipes. As the honourable Member said, our gas contracts will expire over the next 10 years. Since all of our gas supply is commercialized, the renewal of our gas contracts will depend on trade negotiations. We welcome renewals or new contracts for Rohrgas. In October 2017, the EMA lifted its moratorium on new gas contracts to facilitate this task.
Based on current demand and supply forecasts, the EMA expects that further regasification will not be required until the middle of the year. The EOI response deadline is 28 February 2020. As far as our public hospitals are concerned, they are equipped with two sources of supply, so that if one of the sources of supply fails, each is able to ensure the safety of the hospital. »