Natural gas and liquefied natural gas
- Document symbol
- G/LIC/N/3/SGP/20
- Original language
- English
- Published on
- 16/10/2024
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
The import of piped natural gas (PNG) and liquefied natural gas (LNG) except for PNG/LNg that are in transit or are to be transhipped,is regulated by the Energy Market Authority, and requires a valid Gas Importer Licence and Gas Importer (LNG) Licence respectively, unless otherwise exempted by the EMA. Imports of spot LNG (i.e. contracts for supply shorter than one year), as well as LNG that is not intended to be conveyed into Singapore's gas supply system and used only for bunkering or the provision of associated gas-up and cool down services, and exempted from licensing.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
The licensing system applies to PNG, and Term LNG (contracts for supply for at least one year).
Q3. The system applies to goods originating in and coming from which countries?
The licensing system applies to products originating in and coming from all countries.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
The licensing scheme is not intended to restrict the quantity or value of imports. EMA's import licences are maintained to ensure energy security and promote competitively priced supply. Under the Gas Act, the import of natural gas requires a licence, and licences allow us to include conditions that ensure that the importers meet certain requirements such as reliability and safety.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
The licensing procedures are maintained under the Gas Act. All import licensing procedures are statutorily required and published in government gazettes. While the administration of the licensing system is undertaken by EMA, the designation of products to be subjected to licensing and the abolishment of the licensing system require legislative approval.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Details are provided at https://www.ema.gov.sg/Licensees_Gas_Importer_LNG.aspx. While there is no restriction of the volume of LNG imported on a term basis (i.e. gas contracts with one year or longer duration), EMA imposes a 10% annual cap on the volume of spot LNG imported (i.e. gas contracts shorter than a year) based on long-term contracted gas quantities of more than ten years – such information can be found on SLNG's website at www.slng.com.sg.
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
The number of LNG importers is decided at the start of each tranche of LNG import based on the domestic gas demand growth. Importers compete for the new licenses based on published criteria including pricing and reliability of supply, receiving exclusive rights to sell term supply of LNG for a fixed period. Thereafter, the importer can continue to sell term supply of LNG on a non-exclusive basis. As for PNG import, there is no pre-determined number of PNG importers as this depends on whether such importers can secure PNG from neighbouring countries. The tenure of each gas license is extended as and when there are new gas contracts.
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Licences are not allotted for certain goods partly or only to domestic producers of like goods.
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
EMA provides a reasonable period for the submission of applications for Gas Importer (LNG) Licences. For the previous tranches, EMA held a Request for Proposal (RFP) from 30 June 2014 to 30 June 2016. EMA is currently calling for a RFP from 9 July 2020 to 9 November 2020, and from 19 May 2022 to 25 July 2022. While there is no RFP for PNG importers as such importers can apply for a licence whenever they have secured PNG from neighbouring countries, EMA responds to such licence applications as soon as practicable.
Q6.V. What are the minimum and maximum lengths of time for processing applications?
The time taken for processing the licence applications falls within the 60 days period stipulated in Article 3.5(f) of the Agreement on Import Licensing Procedures.
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
There are no limitations on the period of the year during which importation may be made.
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Consideration of the Gas Importer (LNG) Licence application is effected by EMA. Applicants do not have to approach more than one administrative body.
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
EMA calls for an RFP to allocate limited number of licences for each tranche of LNG import. As for PNG import, licences are given on a first come, first served basis.
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
Application for LNG import licences follow the RFP timeline set by EMA. As for PNG import, EMA responds to such licence applications as soon as possible.
Q7.b. Can a licence be granted immediately on request?
EMA will use reasonable endeavours to expedite licence requests if requested.
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
There are no limitations on the period of the year during which applications for a Gas Importer Licence and/or importation of natural gas may be made.
For Gas Importer (LNG) Licence, submission of application will be done under an RFP held by EMA.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Consideration of the Gas Importer Licence application is effected by EMA. Applicants do not have to approach more than one administrative body.
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
An application for an import licence is usually granted if it meets the stipulated criteria. EMA will generally provide the reason(s) in the event of a refusal to issue a licence.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
Generally, all persons, registered firms and institutions are eligible to apply for the Gas Importer Licence. In determining whether to grant a licence to or for a particular person, EMA will consider the factors stipulated under the Gas Act (e.g. ability of that person to finance the carrying on of the particular activity etc.). There is no registration fee.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
For application of the Gas Importer Licence, the required information includes particulars of the applicant and the applicant’s directors, and details of the gas importation business (e.g. commencement date of gas importing, quantities of natural gas to be imported, and purpose of the imported gas). The submission of the following documents is required:
(a) Certified true copies of the Applicant’s Certificate of Incorporation;
(b) Certified true copies of relevant ownership documents;
(c) Certified true copies of the Applicant's gas sale agreements / gas contracts with its gas suppliers;
(d) Audited past profit and loss statements, balance sheets and cash flow statements, credit statements or credit rating (if any), including any history of bankruptcy or financial distress of the Applicant or the significant shareholders for the last two full financial years or since incorporation;
(e) Organisation chart including resume and curriculum vitae (CV) of key appointment holders; and
(f) Description of the business plan, including details such as the purpose of importing such gas, the source of gas, customers, volumes to be imported on a daily and annual basis and the import duration.
Q11. What documents are required upon actual importation?
Upon actual importation, gas importers are required to submit their gas contracts and monthly imported quantities to EMA.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
Importers may obtain information regarding the licensing fees from EMA’s website, or by contacting EMA directly.
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
There are no deposit or advance payment requirements associated with the issuance of licences.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
A Gas Importer Licence is valid up to the expiry of all gas contracts entered into between the licensee and its suppliers and/or customers.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for the non-utilisation of licence or a portion of it.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Licences are not transferable without prior approval in writing from the relevant authority.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
Licensees are required to declare annually whether they have complied with all the conditions set out in the licence.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
There are no other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation.