Singapore legislation

Section 9

of Gas Act 2001

Section 9

Conditions of gas licences

Amended by24/200724/200724/200724/200724/200724/2007

(1)

A gas licence may include such restrictions or conditions (whether or not relating to the activities authorised by the gas licence) as appear to the Authority to be requisite or expedient having regard to the functions and duties of the Authority under section 3.

(2)

Without limiting subsection (1), a gas licence may include conditions —

(a)

restricting the activities which the gas licensee is permitted to carry out;

(b)

requiring payments to be made to the Authority on the grant, or during the currency, of a gas licence or both, of such amount as may be determined by or under the gas licence;

(c)

requiring the gas licensee to furnish specified persons or the Authority in such manner and at such times as may be specified with such information as appears to the Authority to be requisite or expedient for the purpose of facilitating the exercise by those persons or the Authority of the functions or duties assigned to them or as may be reasonably required for that purpose;

(d)

requiring the gas licensee to furnish to the Authority financial information including regulatory accounts in respect of such period and on such basis as may be specified;

(e)

controlling, limiting or restricting —

(i)

the ownership or control, directly or indirectly, of the gas licensee;

(ii)

the creation, holding or disposal of any interest in shares in the gas licensee or in any person holding shares in the gas licensee; or

(iii)

any other interest in the licensed gas business or undertaking of the gas licensee or any part thereof;

(f)

requiring the gas licensee to comply with any direction, determination, order or decision of the Authority as to such matters specified in its gas licence or are of a description so specified;

(g)

requiring the gas licensee to do or not to do such things as are specified in its gas licence or are of a description so specified, except insofar as the Authority consents to its doing or not doing them, as the case may be;

(h)

requiring the gas licensee to comply with any code of practice and standard of performance applicable to the gas licensee;

(i)

providing for the determination by the Authority of such questions arising under the gas licence, or under any document specified or described in the gas licence;

(j)

imposing requirements by reference to designation, acceptance or approval by the Authority;

(k)

providing for references in the conditions of the gas licence to any document specified or described in the gas licence to operate as references to that document as revised or reissued from time to time;

(l)

providing that the conditions of the gas licence have effect or cease to have effect at such times and in such circumstances as may be determined by or under the conditions;

(m)

requiring the gas licensee to provide a performance bond, guarantee or any other form of security on such terms and conditions as the Authority may determine; and

(n)

where the gas licensee is not incorporated or does not have a place of business in Singapore, requiring the gas licensee to appoint, and notify the Authority of, a person who has a residential address or a place of business in Singapore to accept service on behalf of the gas licensee of any notice, order or document required or authorised by this Act to be given or served on the gas licensee.

Amended by24/2007

(3)

Without limiting subsection (1), a gas transporter’s licence may include conditions —

(a)

requiring the gas transporter to enter into an arrangement with any person for —

(i)

the conveyance of gas through a gas pipeline or gas pipeline network owned by, or under the management or control of, the gas transporter; and

(ii)

such other purposes as may be specified in the gas transporter’s licence,on such terms as may be approved by the Authority;

(b)

identifying specified agreements or classes of agreements which the gas transporter may only enter into on such terms as may be approved by the Authority;

(c)

pertaining to the transmission and distribution of gas;

(d)

requiring the gas transporter to have in place procedures to be followed in the event of a public emergency and requiring it to maintain a national gas emergency service for the gas supply system;

(e)

requiring the gas transporter to appoint, at such intervals and on such terms as the Authority may direct, an independent technical auditor for the purposes specified in any such condition;

(f)

requiring the gas transporter to interconnect one or more gas pipelines or gas pipeline networks or to convert a gas pipeline network to allow for the conveyance of natural gas through that gas pipeline network;

(g)

pertaining to the prices to be charged by the gas transporter for use of a gas pipeline or gas pipeline network owned by, or under the management or control of, the gas transporter and the methods by which such charges are to be determined; and

(h)

requiring the gas transporter to establish and maintain arrangements with respect to the provision of special services for meeting the needs of consumers who are chronically sick, disabled or elderly or as appear to the Authority to be requisite or expedient having regard to those duties.

Amended by24/2007

(4)

Without limiting subsection (1), a gas retailer’s licence may include conditions —

(a)

requiring the gas retailer to secure such rights for the conveyance of gas through a gas pipeline or gas pipeline network owned by, or under the management or control of, a gas transporter as are necessary for the purposes of complying with obligations owed by the gas retailer to consumers connected to such gas pipeline or gas pipeline network;

(b)

requiring the gas retailer to establish and maintain arrangements with respect to the provision of special services for meeting the needs of consumers who are chronically sick, disabled or elderly or as appear to the Authority to be requisite or expedient having regard to those duties;

(c)

requiring the gas retailer to act as a retailer of last resort in the event of the failure or default of another gas retailer;

(d)

pertaining to converting a gas pipeline network to allow for the conveyance of natural gas through a gas pipeline network; and

(e)

pertaining to the prices to be charged by the gas retailer for the retailing of gas and the methods by which such charges are determined.

Amended by24/2007

(5)

Without limiting subsection (1), an onshore receiving facility operator’s licence may include conditions —

(a)

requiring the onshore receiving facility operator to —

(i)

have in place procedures for compliance by the operator in the event of a public emergency; and

(ii)

have emergency response capabilities; and

(b)

requiring the onshore receiving facility operator to appoint, at such intervals and on such terms as the Authority may direct, an independent technical auditor for the purposes specified in any such condition.

Amended by24/2007

(6)

Without limiting subsection (1), an LNG terminal operator’s licence may include conditions —

(a)

pertaining to the type, specifications and use of the LNG terminal;

(b)

requiring the LNG terminal operator to —

(i)

have in place procedures for compliance by the operator in the event of a public emergency; and

(ii)

have emergency response capabilities;

(c)

pertaining to the quantities of natural gas or liquefied natural gas which may be received, stored or processed at the LNG terminal;

(d)

regulating the terms and conditions of any service provided at the LNG terminal; and

(e)

requiring the LNG terminal operator to appoint, at such intervals and on such terms as the Authority may direct, an independent technical auditor for the purposes specified in any such condition.

Amended by24/2007

(7)

Without limiting subsection (1), a gas importer’s licence may include a condition controlling the quantities of natural gas or liquefied natural gas to be imported.

Amended by24/2007