Singapore legislation

Clause 34

of Energy Transition Measures and Other Amendments Bill

Clause 34

New sections 38B and 38C

In the Gas Act, after section 38A, insert —“Connections to and use of key facilities, etc.38B.—

(1)

The Authority may direct any person mentioned in any of the following paragraphs to allow a gas licensee (G) to carry out any activity described in the paragraph:

(a)

to connect any key conduit of G to any key facility or key conduit of a person and to use the key facility or key conduit of the person;

(b)

to install and use any key conduit of G at any premises owned or occupied by a person;

(c)

to install and use any usage equipment of G at a key facility or key conduit of a person, or a key conduit of G, mentioned in paragraph (a) or (b);

(d)

to use any prescribed wharf or jetty owned or occupied by a person, to berth any vessel on which G is to load or from which G is to discharge any material of G, and to load the material onto or discharge the material from the vessel;

(e)

to use any equipment, apparatus, appliance or facility, or any key conduit, of a person at any prescribed wharf or jetty, to enable G —

(i)

to load any material of G onto or discharge any material of G from any vessel berthed at the prescribed wharf or jetty; or

(ii)

to bring any material of G to or away from the prescribed wharf or jetty;

(f)

to install and use any equipment, apparatus, appliance or facility of G at a prescribed wharf or jetty owned or occupied by a person, to enable G to carry out any activity described in paragraph (e)(i) or (ii).(2) To avoid doubt, the Authority may issue directions to more than one person at any one time, in relation to the same G.(3) To avoid doubt, the premises mentioned in subsection (1)(b) need not be premises at which any key facility or key conduit of a person (to which G is to connect its key conduit) is situated, or at which G is to install any usage equipment.(4) The Authority may make a direction under subsection (1) only if it considers that the direction is necessary —

(a)

in the public interest; or

(b)

to ensure the security and reliability of the supply of gas to the public.(5) For the purpose of subsection (1), the direction may —

(a)

require the person to allow G to enter any premises owned or occupied by the person for the purposes of carrying out any activity mentioned in subsection (1) and specified in the direction, and in any event require the person not to do, or cause or allow to be done, anything that may prevent G from carrying out the activity; and

(b)

require the person and G to enter into an agreement within the period of 30 days after the connection or installation under subsection (1)(a), (b), (c) or (f) has been made or the use in subsection (1)(d) or (e) has commenced, for the purposes of —

(i)

granting G a wayleave —

(A)

for the continuation of the connection or installation at the premises;

(B)

for G to be able to carry out maintenance works on —

(BA)the connection at the premises; or

(BB)the key conduit, usage equipment, equipment, apparatus, appliance or facility of G installed at the premises; or

(C)

for G to continue the use specified in the direction,as the case may be; and

(ii)

reasonably compensating the person for any loss suffered as a result of the connection, installation or use,and the person and G must comply with a direction under subsection (1) to the extent that it relates to either of them.(6) The Authority may, upon the request of the person or G, grant one or more extensions of the period mentioned in subsection (5)(b).(7) If the person and G are unable to agree on the terms for any matter so as to be able to enter into an agreement in accordance with a requirement under subsection (5)(b), either the person or G may request the Minister to establish an Appeal Panel under section 84 to determine the reasonable terms for that matter.(8) The decision of the Appeal Panel under subsection (7) must include a date on which the person and G are treated as having entered into an agreement comprising —

(a)

the terms agreed between the person and G, if any; and

(b)

the terms determined by the Appeal Panel,and the person and G are treated as having entered into an agreement with each other as from that date on all such terms.(9) The direction of the Authority under subsection (1) is revoked as from the date mentioned in the Appeal Panel’s decision under subsection (8) to the extent the decision is inconsistent with that direction.(10) Nothing in subsection (8) prevents the person and G from varying or terminating the agreement treated as entered into under that subsection.(11) A person need not comply with a direction given by the Authority under subsection (1) for so long as an appeal under section 93 against the direction is pending.(12) Any person who contravenes a direction under 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 $100,000 for every day or part of a day during which the offence continues after conviction.(13) In this section —“key conduit” means any of the following:

(a)

any gas pipeline;

(b)

any pipe for the transportation of any coolant described in paragraph (c) of the definition of “key facility”;

(c)

any other conduit prescribed by regulations made under section 96 as a key conduit for the purposes of this section;“key facility” means any of the following:

(a)

a gas processing or production facility which carries out any of the following operations:

(i)

synthesising, manufacturing, purifying, blending, odorising or compressing gas for the purpose of enabling it to be introduced into or conveyed through a gas pipeline network owned by, or under the management or control of, a gas transporter or an exempt gas transporter;

(ii)

removing from gas for any purpose in sub‑paragraph (i) any of its constituent gases, or separating from gas for that purpose any liquids;

(iii)

determining the quantity or quality of gas which is or is to be introduced into or conveyed through the gas pipeline network mentioned in sub‑paragraph (i);

(b)

any onshore receiving facility, LNG terminal, gas storage or landing facility (other than a gas pipeline);

(c)

any facility for receiving or storing any coolant (including seawater) required in connection with the cooling of any facility in paragraph (a) or (b);

(d)

any other facility prescribed by regulations made under section 96 as a key facility for the purposes of this section;“prescribed wharf or jetty” means a wharf or jetty prescribed by regulations made under section 96 for the purposes of this section;“usage equipment” means any equipment, apparatus or appliance connected with the use or operation of a key facility or a key conduit.Connections to and use of key facilities, etc.: supplementary provisions38C.—

(1)

An agreement under section 38B ceases to be binding on the person and G upon —

(a)

the determination of the agreement upon the expiration of a period specified in the agreement;

(b)

the termination of the agreement pursuant to a term contained in the agreement, or any written law or rule of law; or

(c)

despite anything in the agreement, the person ceasing, after the agreement is entered into, to own the key facility or key conduit to which G’s key conduit is connected, or to own or occupy the premises at which G’s key conduit, usage equipment, equipment, apparatus, appliance or facility is installed.(2) Upon the agreement ceasing to be binding on the person and G, a notice to remove any connection, or G’s key conduit, usage equipment, equipment, apparatus, appliance or facility, covered by the agreement, may be given to G by —

(a)

where subsection (1)(a) or (b) applies, the person; or

(b)

where subsection (1)(c) applies, the person who is the owner of the key facility or key conduit to which G’s key conduit is connected or the owner or occupier of the premises (as the case may be) following the change in the ownership or occupation.(3) The notice must give G at least the period prescribed by regulations made under section 96 to effect the removal.(4) G may, during the period given in the notice to remove, apply to the Authority —

(a)

where G is of the view that the period given to it (including where the period is of the prescribed period mentioned in subsection (3)) is insufficient for it to effect the removal — for an extension of the period; or

(b)

for another direction under section 38B(1).(5) Where G has made an application under subsection (4), G need not comply with the notice to remove pending the Authority’s decision on the application.(6) Where the Authority refuses to grant the application under subsection (4), then, unless the person cancels the notice, G must comply with the notice to remove before the end of the latest of the following periods:

(a)

the period in the notice to remove;

(b)

for an application under subsection (4)(b), the period prescribed by regulations made under section 96 after the date of the Authority’s refusal to grant the direction requested;

(c)

the period specified (if any) in the notice of the Authority’s refusal.(7) Despite subsection (6), G need not comply with the notice to remove if G appeals under section 93 against a decision of the Authority mentioned in that subsection, for so long as the appeal is pending.(8) Where the decision on appeal confirms the decision of the Authority, G must comply with the notice to remove before the end of the later of the following periods:

(a)

for an application under subsection (4)(b), the period prescribed by regulations made under section 96 after the date of the decision on appeal;

(b)

the period specified (if any) in the decision on appeal.(9) Where, pursuant to section 38B, G has at any premises installed any key conduit, usage equipment, equipment, apparatus, appliance or facility, each of these —

(a)

continues to remain the property of G and is deemed not to be a fixture, and does not vest in the owner of the premises; and

(b)

is not to be subject to distress or be liable to be taken under or pursuant to an enforcement order of any court or any proceedings in bankruptcy against the person in whose possession it is.(10) In this section, “key conduit”, “key facility” and “usage equipment” have the meanings given by section 38B(13).”.

Clause 34 — Energy Transition Measures and Other Amendments Bill