Statute Details
- Title: Gas (Gas Importer’s Licence) (Exemption) Order 2013
- Act Code: GA2001-S32-2013
- Type: Subsidiary Legislation (SL)
- Authorising Act: Gas Act (Chapter 116A)
- Enacting authority: Energy Market Authority of Singapore (with ministerial approval)
- Commencement: 25 January 2013
- Status: Current version as at 27 March 2026
- Key provisions:
- Paragraph 1: Citation and commencement
- Paragraph 2: Definition of “LNG terminal”
- Paragraph 3: Exemption from section 6(1)(h) of the Gas Act
- Paragraph 4: Conditions attached to the exemption
- Notable amendment: Amended by S 312/2013 with effect from 27 March 2013
What Is This Legislation About?
The Gas (Gas Importer’s Licence) (Exemption) Order 2013 is a targeted regulatory instrument made under the Gas Act (Chapter 116A). In essence, it creates a time-limited exemption for a specific entity—Singapore LNG Corporation Pte. Ltd.—from the licensing requirement in section 6(1)(h) of the Gas Act, but only for a narrowly defined purpose connected to the commissioning of equipment at a particular LNG terminal.
In plain language, the Order recognises that during the commissioning phase of an LNG terminal, LNG imports may be necessary for operational testing, cooling and gassing-up procedures, and related commissioning activities. Rather than requiring the full licensing regime to apply during this initial period, the Order allows imports to proceed under an exemption—provided strict conditions are met to control how the LNG is used and to ensure regulatory oversight.
The scope is therefore narrow and purpose-driven: it is not a general relaxation of gas import controls. It is an exemption tied to (i) the identity of the importer, (ii) the LNG terminal location, (iii) the commissioning purpose, and (iv) a long but finite window running from 25 January 2013 to 28 January 2040 (inclusive). The conditions in paragraph 4 are central to the legal risk allocation and compliance framework.
What Are the Key Provisions?
1. Citation and commencement (paragraph 1)
Paragraph 1 provides the formal citation and states that the Order comes into operation on 25 January 2013. For practitioners, this matters because the exemption period in paragraph 3 is anchored to this commencement date. Any compliance assessment (e.g., whether an import fell within the exemption window) will typically require careful attention to dates and documentary evidence.
2. Definition of “LNG terminal” (paragraph 2)
The Order defines “LNG terminal” as the LNG terminal situated at 6 Meranti View, Singapore 627600. This is a critical scoping mechanism. Even if LNG is imported for commissioning activities, the exemption is only available where the commissioning relates to equipment used at the defined terminal. If commissioning occurs elsewhere, the exemption would not be available, and the licensing requirement in section 6(1)(h) would likely remain applicable.
3. Exemption from section 6(1)(h) of the Gas Act (paragraph 3)
Paragraph 3 is the operative exemption. It states that, subject to paragraph 4, section 6(1)(h) of the Gas Act shall not apply to Singapore LNG Corporation Pte. Ltd. for the period between 25 January 2013 and 28 January 2040 (both dates inclusive), in respect of the import of LNG for the purpose of commissioning any equipment used at the LNG terminal.
Several legal points flow from this:
- Entity-specific: The exemption is not available to other importers. It is tailored to Singapore LNG Corporation Pte. Ltd.
- Purpose-specific: The exemption applies only to LNG imported for commissioning equipment used at the terminal. Imports for other purposes (e.g., routine commercial supply) would fall outside the exemption.
- Time-specific: The exemption is available for a long period (nearly 27 years). However, it is still bounded. Practitioners should not assume the exemption is indefinite.
4. Conditions of exemption (paragraph 4)
Paragraph 4 imposes conditions that effectively regulate the downstream handling of LNG and ensure that the exemption does not become a loophole for broader commercial use without licensing. The conditions were amended by S 312/2013 with effect from 27 March 2013, but the core compliance architecture remains clear.
(a) Restricted use after regasification
Paragraph 4(a) provides that any LNG referred to in paragraph 3, which has been regasified in the process of commissioning equipment, shall not be used for any purpose other than:
- (i) operating the LNG terminal;
- (ii) cooling down or gassing up any LNG vessel;
- (iii) without prejudice to section 6(1)(d) of the Act, for sale to any person.
This is a nuanced restriction. It distinguishes between LNG that has been regasified during commissioning and the permitted uses of the resulting gas. The inclusion of “sale to any person” is particularly important: it signals that commercial sale may be permissible, but it is expressly framed “without prejudice to section 6(1)(d)”. In practice, this means that other statutory requirements (including those relating to sale) may still apply, and the exemption does not necessarily remove all regulatory obligations.
(b) Treatment of LNG not utilised in commissioning
Paragraph 4(b) addresses LNG imported under the exemption but not utilised in commissioning equipment. It provides two pathways:
- (i) immediate export upon completion of the commissioning; or
- (ii) with the approval of the Authority, use for the permitted purposes in paragraph 4(a) during a specified period, with any LNG not used by the end of that period being immediately exported.
This condition is designed to prevent “stranded” LNG from being diverted into other uses without regulatory scrutiny. The requirement for approval by the Authority introduces an administrative control point. Practitioners should note that approval is discretionary and time-bound; therefore, compliance planning should include timelines for commissioning completion, export logistics, and any application for approval to allow interim use.
(c) Compliance with Authority directions (section 63 of the Act)
Paragraph 4(c) requires Singapore LNG Corporation Pte. Ltd. to comply with all directions issued by the Authority in relation to the import of LNG pursuant to section 63 of the Act. This is a broad compliance hook. Even where the exemption conditions in paragraph 4(a) and 4(b) are satisfied, failure to comply with directions under section 63 could still breach the exemption framework.
From a legal risk perspective, this means that the exemption is not “self-executing” in a purely mechanical sense. The Authority’s directions may impose operational, reporting, or procedural requirements. Counsel should therefore treat the exemption as conditional on ongoing regulatory engagement and document retention.
How Is This Legislation Structured?
The Order is structured as a short set of provisions:
- Paragraph 1: Citation and commencement (sets the effective date).
- Paragraph 2: Definitions (defines “LNG terminal” by reference to a specific address).
- Paragraph 3: The exemption clause (disapplies section 6(1)(h) for a defined importer, period, and purpose).
- Paragraph 4: Conditions (limits permitted use, regulates unused LNG, and requires compliance with Authority directions).
There are no additional parts or complex schedules in the extract provided. The legal effect is concentrated in paragraphs 3 and 4.
Who Does This Legislation Apply To?
The exemption applies only to Singapore LNG Corporation Pte. Ltd. It is not a general exemption for all gas importers. Accordingly, other entities importing LNG for commissioning purposes at the defined terminal would not automatically benefit from this Order and would need to consider whether they require a licence under the Gas Act or whether other exemption instruments apply.
The Order also indirectly affects other stakeholders involved in commissioning and terminal operations—such as contractors, vessel operators, and downstream purchasers—because the conditions regulate how LNG (and regasified gas) may be used and whether sale is permitted. However, the direct legal obligations under the exemption are imposed on the exempt importer, with compliance enforced through the Authority’s directions and the statutory framework.
Why Is This Legislation Important?
This Order is important because it demonstrates how Singapore’s gas regulatory regime balances strict licensing controls with practical operational needs during major infrastructure commissioning. LNG terminals require complex commissioning activities, including cooling down, gassing up, and operational testing. Without an exemption, the licensing requirement could create delays or administrative friction that may be incompatible with commissioning schedules.
For practitioners, the key significance lies in the precision of the exemption. It is purpose-limited and condition-heavy. The conditions in paragraph 4 are not merely formalities; they are the compliance boundaries that determine whether the exemption is properly relied upon. In particular:
- Permitted use after regasification is restricted to terminal operation, vessel cooling/gassing-up, and sale (subject to other statutory provisions).
- Unused LNG must be exported or, with Authority approval, used only for permitted purposes within a specified timeframe.
- Authority directions under section 63 must be followed, creating an ongoing regulatory compliance obligation.
From an enforcement standpoint, the Authority’s ability to issue directions and to require export of unused LNG provides leverage to ensure that the exemption does not undermine the licensing system. Practically, counsel should advise on compliance governance: internal controls to track LNG batches, commissioning utilisation, regasification status, permitted end-uses, and evidence of export or approval-based interim use.
Related Legislation
- Gas Act (Chapter 116A) — in particular:
- Section 6(1)(h): licensing requirement from which the exemption is granted
- Section 6(1)(d): referenced in paragraph 4(a)(iii) (sale to any person)
- Section 63: basis for Authority directions referenced in paragraph 4(c)
- Gas (Gas Importer’s Licence) (Exemption) Order 2013 — as amended by S 312/2013 (effective 27 March 2013)
Source Documents
This article provides an overview of the Gas (Gas Importer’s Licence) (Exemption) Order 2013 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.