Singapore legislation

Clause 5

of Gas (Amendment) Bill

Clause 5

New sections 6 and 7

The Gas Act is amended by inserting, immediately before section 8, the following sections:“Prohibition on unauthorised activities relating to gas6.—

(1)

Subject to subsections (2), (3) and (4), no person shall —

(a)

convey gas —

(i)

through a gas pipeline or gas pipeline network to any premises; or

(ii)

to a gas pipeline or gas pipeline network owned by, or under the management or control of, a gas transporter;

(b)

convey gas for or on behalf of a gas transporter (other than as an employee of the gas transporter);

(c)

ship gas on or after such date as the Minister may, by order published in the Gazette, specify;

(d)

retail gas on or after such date as the Minister may, by order published in the Gazette, specify;

(e)

manage or operate any onshore receiving facility, whether —

(i)

for himself; or

(ii)

as principal, or for or on behalf of any other person (other than as an employee);

(f)

manage or operate any LNG terminal;

(g)

produce town gas on or after such date as the Minister may, by order published in the Gazette, specify;

(h)

import natural gas or liquefied natural gas; or

(i)

carry on such other activity relating to gas as the Minister may, by order published in the Gazette, specify,unless he is authorised to do so by a gas licence or is exempted under section 8.(2) A person may, without a licence —

(a)

convey, in any premises or part thereof in which that person has an interest, gas supplied for use in the premises; or

(b)

sell, for use in any premises or part thereof in which that person has an interest, gas retailed for use in the premises by a gas retailer.(3) A person who is not incorporated in Singapore and does not have a place of business in Singapore may, without a licence, manage or operate an onshore receiving facility as principal if —

(a)

he appoints a person who is incorporated in Singapore or has a place of business in Singapore to manage or operate the onshore receiving facility on his behalf (other than as an employee); and

(b)

that person is licensed for the purpose of subsection (1)(e)(ii).(4) A person may, without a licence, manage or operate an onshore receiving facility on behalf of a principal, whether or not he is incorporated in Singapore or has a place of business in Singapore, if —

(a)

his principal is incorporated in Singapore or has a place of business in Singapore; and

(b)

his principal is licensed for the purpose of subsection (1)(e)(ii).(5) An order under subsection (1)(i) may provide for —

(a)

the application of the provisions of this Act to the activity specified in the order subject to such exceptions or modifications as may be specified in the order;

(b)

matters relating to the regulation of the activity specified, including the prescribing of fees and charges;

(c)

the conditions which may be included in a licence authorising the carrying on of the activity specified in the order; and

(d)

generally for giving full effect to or for carrying out the purposes of the order.(6) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1 million and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part thereof during which the offence continues after conviction.Application for gas licence, etc.7.—

(1)

An application for a licence, an extension to a licence or an exemption under this Part shall —

(a)

be made in writing to the Authority and shall be in such form as may be determined by the Authority; and

(b)

be accompanied by such information, document and fee as may be determined by the Authority.(2) In determining whether to grant or extend a licence to or for a particular person, the Authority shall consider the following:

(a)

the ability of that person to finance the carrying on of the particular activity;

(b)

the experience of that person in carrying on the activity, and his ability to perform the duties which would be imposed on him under this Act and the licence;

(c)

in the case of a gas retailer’s licence, in relation to that person —

(i)

the quantities of gas available, or which are anticipated to be available, to that person for retail purposes; and

(ii)

the sufficiency of rights held, or which are anticipated to be held, by that person to ship gas to premises for retail purposes;

(d)

in the case of a gas importer’s licence, in relation to that person, the quantities of natural gas or liquefied natural gas available, or which are anticipated to be available, to that person for import;

(e)

whether or not that person is related to any gas licensee or any person exempted under section 8; and

(f)

the functions and duties of the Authority under section 3.(3) The Authority may, with the approval of the Minister, grant or extend —

(a)

for any or all of the purposes referred to in section 6(1)(a), a gas transporter’s licence;

(b)

for the purpose referred to in section 6(1)(b), a gas transport agent’s licence;

(c)

for the purpose referred to in section 6(1)(c), a gas shipper’s licence;

(d)

for the purpose referred to in section 6(1)(d), a gas retailer’s licence;

(e)

for any or all of the purposes referred to in section 6(1)(e), an onshore receiving facility operator’s licence;

(f)

for any or all of the purposes referred to in section 6(1)(f), an LNG terminal operator’s licence; (g)for the purpose referred to in section 6(1)(g), a town gas producer’s licence;

(h)

for any or all of the purposes referred to in section 6(1)(h), a gas importer’s licence; and

(i)

for the purpose referred to in paragraph (i) of section 6(1), a licence for such activity as may be specified in any order made under that paragraph.(4) A gas transporter’s licence granted or extended for the purpose referred to in section 6(1)(a)(i) shall specify the area to which the licence relates, which area may include any part of an area specified in an existing licence granted to another person under this section.(5) A gas licence shall not be granted to any person, if the grant of the licence may, in the opinion of the Authority, give rise to a conflict of interest in the discharge of any duty imposed on the person under this Act, the Electricity Act (Cap. 89A) or any other licence granted to him under this section.(6) A gas transporter’s licence shall not be granted to —

(a)

a gas retailer, gas shipper or town gas producer; or

(b)

a person who is the holder of a licence under section 9(1)(a), (c), (d) or (f) of the Electricity Act.(7) A gas transport agent’s licence shall not be granted to a gas retailer, gas shipper or town gas producer.(8) A gas shipper’s licence shall not be granted to a gas transporter or gas transport agent.(9) A gas retailer’s licence shall not be granted to a gas transporter or gas transport agent.(10) Without prejudice to the application of section 6(3) and (4), an onshore receiving facility operator’s licence shall not be granted to any person who is not incorporated in Singapore and does not have a place of business in Singapore.(11) A town gas producer’s licence shall not be granted to a gas transporter or gas transport agent.(12) Every licence granted or extended under this Part shall continue in force, unless it is revoked or suspended, for such period as may be specified in the licence.”.

Clause 5 — Gas (Amendment) Bill | laws.sg