Statute Details
- Title: Gas (Gas Importer’s Licence) (Exemption) Order 2013
- Act Code: GA2001-S32-2013
- Type: Subsidiary Legislation (SL)
- Authorising Act: Gas Act (Cap. 116A)
- Enacting authority: Energy Market Authority of Singapore (with ministerial approval)
- Citation: S 32/2013
- Commencement: 25 January 2013
- Current version status: Current version as at 27 March 2026
- Key provisions: Paragraphs 1–4 (citation/commencement; definition of “LNG terminal”; exemption; conditions)
- Amendment note: 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 (Cap. 116A). In plain terms, it creates a specific exemption from a licensing requirement for a particular gas importer—Singapore LNG Corporation Pte. Ltd.—in relation to the import of LNG (liquefied natural gas) for a defined purpose: commissioning equipment at the LNG terminal located in Singapore.
Under the Gas Act, importing gas (including LNG) may generally require a licence. However, the exemption order recognises that during the commissioning phase of an LNG terminal, LNG must be imported and used for operational testing and commissioning activities. Without an exemption, the commissioning process could be delayed or made administratively burdensome by the need to obtain a licence for each relevant import.
The order therefore suspends the application of the relevant licensing provision for a long period—spanning from 25 January 2013 to 28 January 2040 (inclusive)—but only for LNG imported for commissioning equipment at the LNG terminal. The exemption is not unconditional: it is tightly constrained by conditions on permitted use, disposal/export of unused LNG, and compliance with directions issued by the Energy Market Authority (the “Authority”).
What Are the Key Provisions?
1. Citation and commencement (Paragraph 1)
Paragraph 1 provides the legal citation and states that the Order comes into operation on 25 January 2013. For practitioners, this matters because it fixes the start date of the exemption and therefore determines whether LNG imports fall within the exempt period.
2. Definition of “LNG terminal” (Paragraph 2)
Paragraph 2 defines “LNG terminal” as the LNG terminal situated at 6 Meranti View, Singapore 627600. This is a critical scoping device. The exemption is tied to commissioning of equipment used at that specific terminal. If LNG is imported for commissioning at a different facility (or for equipment not used at that terminal), the exemption would not be available.
3. Exemption from section 6(1)(h) of the Gas Act (Paragraph 3)
Paragraph 3 is the core operative provision. 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.
Although the extract does not reproduce the text of section 6(1)(h), the structure of the order indicates that section 6(1)(h) is the licensing requirement relevant to gas importers. The exemption therefore functions as a legal “carve-out” from the licensing regime for the specified importer and specified purpose. The long duration (nearly 27 years) suggests that commissioning-related activities may extend beyond an initial construction phase, or that the regulatory framework anticipates future commissioning work (for example, replacement or expansion equipment) at the terminal.
4. Conditions of exemption (Paragraph 4)
Paragraph 4 imposes three main conditions, each designed to prevent the exemption from becoming a general licence substitute.
(a) Permitted use of regasified LNG (Paragraph 4(a))
Paragraph 4(a) provides that any LNG referred to in paragraph 3, which has been regasified in the process of commissioning equipment at the LNG terminal, must not be used for any purpose other than:
- (i) operating the LNG terminal;
- (ii) cooling down or gassing up any LNG vessel; or
- (iii) (without prejudice to section 6(1)(d) of the Act) for sale to any person.
This condition is important because it regulates the downstream use of LNG once regasified. It permits use for terminal operations and vessel-related activities, which are operationally linked to commissioning and safe handling. It also permits sale, but expressly “without prejudice to section 6(1)(d) of the Act,” signalling that other statutory requirements may still apply to sales (for example, other licensing or regulatory constraints). Practitioners should therefore treat paragraph 4(a)(iii) as allowing sale only within the boundaries of the Gas Act’s remaining provisions.
(b) Treatment of LNG not utilised in commissioning (Paragraph 4(b))
Paragraph 4(b) addresses the compliance risk of LNG imports exceeding commissioning needs. It provides that any LNG referred to in paragraph 3 that is not utilised in commissioning equipment in relation to which the LNG is imported must be:
- (i) immediately exported upon completion of the commissioning; or
- (ii) with the approval of the Authority, used for the permitted purposes in paragraph 4(a) during a period specified in the Authority’s approval, with any LNG not used by the end of that period exported immediately.
This is a strong “use it or export it” mechanism. It reduces the possibility that LNG imported under the exemption becomes a reservoir for unrelated commercial trading. The approval pathway in paragraph 4(b)(ii) provides flexibility, but only with Authority oversight and time limits.
(c) Compliance with Authority directions (Paragraph 4(c))
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 condition is significant for enforcement and operational governance. It effectively means that even where the exemption applies, the Authority retains regulatory control through directions—potentially covering matters such as import quantities, timing, documentation, safety protocols, and reporting requirements.
Amendment effect (S 312/2013)
The extract indicates that paragraph 3 and paragraph 4 were amended by S 312/2013 with effect from 27 March 2013. While the extract does not specify the exact textual changes, practitioners should check the amendment instrument to confirm whether the scope, duration, or conditions were modified. This is particularly relevant for any compliance assessment for imports made between 25 January 2013 and 27 March 2013.
How Is This Legislation Structured?
The Order is structured as a short, four-paragraph instrument:
- Paragraph 1: Citation and commencement (when the Order takes effect).
- Paragraph 2: Definition of the relevant facility (“LNG terminal” at a specified address).
- Paragraph 3: The operative exemption from the Gas Act licensing provision (section 6(1)(h)) for a specified importer, purpose, and time period.
- Paragraph 4: Conditions attached to the exemption, including permitted uses of regasified LNG, mandatory export or approved alternative use for unused LNG, and compliance with Authority directions.
In practice, the operative legal work is done by paragraphs 3 and 4. Paragraphs 1 and 2 are scoping and timing provisions that determine whether the exemption is available.
Who Does This Legislation Apply To?
The exemption is expressly directed at Singapore LNG Corporation Pte. Ltd. It is not a general exemption for all LNG importers. Therefore, the legal effect is personal to that entity (and to the extent of the defined LNG terminal and commissioning purpose).
Additionally, the exemption is limited to LNG imported for the purpose of commissioning equipment used at the LNG terminal at the specified address. Even for the named company, LNG imported for other purposes—such as ordinary commercial supply not connected to commissioning—would fall outside the exemption and would likely require compliance with the Gas Act licensing regime.
Why Is This Legislation Important?
This Order is important because it provides a practical regulatory pathway for the commissioning of an LNG terminal while maintaining safeguards. LNG commissioning typically involves complex operational testing, safety checks, and staged introduction of gas into systems. By exempting the importer from the licensing requirement for commissioning-related imports, the Order reduces administrative friction and supports timely project execution.
At the same time, the conditions demonstrate a careful balance between facilitation and control. The permitted-use restrictions in paragraph 4(a) ensure that regasified LNG is used for terminal operations, vessel cooling/gassing up, or sale subject to other statutory constraints. The export requirement in paragraph 4(b) prevents the exemption from being used to import LNG beyond commissioning needs for unrelated purposes. Finally, the obligation to comply with Authority directions ensures ongoing regulatory oversight.
For practitioners advising on compliance, contracting, or regulatory strategy, the Order raises several practical issues: (i) how to document that LNG imports are genuinely “for the purpose of commissioning” equipment used at the terminal; (ii) how to track regasification and subsequent use to ensure compliance with paragraph 4(a); (iii) how to manage unused LNG through export or time-limited approved use; and (iv) how to incorporate Authority directions issued under section 63 into operational and contractual processes.
Related Legislation
- Gas Act (Cap. 116A) — in particular section 6(1)(h) (licensing provision from which the exemption is made), section 6(1)(d) (referenced in the conditions), and section 63 (basis for Authority directions).
- SL 32/2013 — Gas (Gas Importer’s Licence) (Exemption) Order 2013 (S 32/2013).
- S 312/2013 — amendment to the Order with effect from 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.