Statute Details
- Title: Gas (Gas Importer’s Licence) (Exemption) Order 2013
- Act Code: GA2001-S32-2013
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Gas Act (Chapter 116A)
- Enacting Authority: Energy Market Authority of Singapore (with approval of the Second Minister for Trade and Industry)
- Commencement: 25 January 2013
- Key Provisions: Exemption from section 6(1)(h) of the Gas Act; definition of “LNG terminal”; conditions governing the exemption
- Beneficiary (as stated): Singapore LNG Corporation Pte. Ltd.
- Exemption Period: 25 January 2013 to 28 January 2040 (inclusive)
- Most Recent Version Noted: Current version as at 27 March 2026
- Amendment Noted in Extract: 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 plain terms, it creates a specific exemption from the licensing requirement that would otherwise apply to a gas importer—here, in relation to the import of LNG (liquefied natural gas) for a particular purpose.
The Order is not a general deregulation measure. Instead, it is narrowly designed to support the commissioning and operational readiness of Singapore’s LNG terminal located at 6 Meranti View, Singapore 627600. During the commissioning phase, LNG may need to be imported and processed (including regasification) to test, cool down, and operate equipment used at the terminal. The exemption allows Singapore LNG Corporation Pte. Ltd. to import LNG for commissioning without being constrained by the licensing provision referenced in section 6(1)(h) of the Gas Act.
From a practitioner’s perspective, the legal significance lies in the balance the Order strikes: it grants a long-term exemption (spanning decades) but imposes strict conditions on how the imported LNG may be used, what must happen to unused LNG, and the requirement to comply with regulatory directions issued by the Energy Market Authority (EMA) under the Gas Act.
What Are the Key Provisions?
1. Citation and commencement (paragraph 1)
The Order may be cited as the Gas (Gas Importer’s Licence) (Exemption) Order 2013 and comes into operation on 25 January 2013. This matters for compliance timelines and for determining whether any import activities fall within the exemption period.
2. Definition of “LNG terminal” (paragraph 2)
The Order defines “LNG terminal” as the LNG terminal situated at 6 Meranti View, Singapore 627600. This geographic and facility-specific definition is crucial: the exemption is tied to commissioning “any equipment used at the LNG terminal.” If LNG is imported for commissioning activities outside the defined terminal, the exemption would not clearly apply.
3. Exemption from section 6(1)(h) of the Gas Act (paragraph 3)
The core operative provision 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 section 6(1)(h) itself, the structure indicates that section 6(1)(h) is a licensing-related requirement applicable to gas importers. The Order effectively carves out an exception for the specified entity, for the specified terminal, for the specified purpose (commissioning equipment), and for the specified time window.
4. Conditions of exemption (paragraph 4)
The exemption is conditional. Paragraph 4 sets out three main compliance requirements: (a) permitted uses of regasified LNG; (b) treatment of LNG not utilised in commissioning; and (c) compliance with EMA directions.
(a) Permitted purposes for regasified LNG (paragraph 4(a))
Any LNG referred to in paragraph 3 that has been regasified in the process of commissioning equipment must not be used for any purpose other than:
- (i) operating the LNG terminal;
- (ii) cooling down or gassing up any LNG vessel;
- (iii) sale to any person, subject to section 6(1)(d) of the Gas Act (the extract expressly states “without prejudice to section 6(1)(d)”).
This is a key limitation. It prevents “mission creep” where LNG imported under the commissioning exemption could be diverted to unrelated commercial uses. The reference to section 6(1)(d) signals that even where sale is contemplated, it remains subject to other statutory licensing or regulatory requirements.
(b) Export or approved alternative use for unused LNG (paragraph 4(b))
If any LNG imported under paragraph 3 is not utilised in commissioning the equipment in relation to which it was imported, it must be handled in one of two ways:
- (i) immediately exported upon completion of the commissioning; or
- (ii) with EMA approval, used for the permitted purposes listed in paragraph 4(a) during a period specified in the approval, with any LNG not used by the end of that period exported immediately.
This condition is designed to ensure that the exemption does not become a mechanism for stockpiling LNG for broader commercial distribution without regulatory oversight. The “immediately exported” requirement creates a clear compliance trigger, while the “with approval” pathway provides operational flexibility but only within EMA-controlled boundaries.
(c) Compliance with EMA directions (paragraph 4(c))
Singapore LNG Corporation Pte. Ltd. must comply with all directions issued by the Authority in relation to the import of LNG pursuant to section 63 of the Act. This is an important enforcement hook. Even where the exemption text appears to permit certain actions, EMA directions may impose additional procedural or operational requirements (for example, reporting, monitoring, safety controls, or timing constraints). Practitioners should therefore treat EMA directions as integral to compliance planning.
Amendment note (S 312/2013, effective 27/03/2013)
The extract indicates that paragraph 4 was amended by S 312/2013 with effect from 27 March 2013. While the extract does not specify the exact changes, the practitioner should consult the amending instrument to confirm whether any conditions were tightened, clarified, or restructured. This can be critical when assessing historical compliance or interpreting the current scope of permitted uses.
How Is This Legislation Structured?
The Order is structured as a short, four-paragraph instrument:
- Paragraph 1 (Citation and commencement): establishes how the Order is cited and when it takes effect.
- Paragraph 2 (Definition): defines the key facility (“LNG terminal”) to which the exemption is tied.
- Paragraph 3 (Exemption): sets out the exemption from the Gas Act licensing provision for the specified entity, purpose, and time period.
- Paragraph 4 (Conditions): imposes operational and compliance conditions governing use of regasified LNG, handling of unused LNG, and compliance with EMA directions.
Because the instrument is compact, the practitioner’s task is largely interpretive: determining whether a particular import falls within “for the purpose of commissioning any equipment used at the LNG terminal,” and ensuring that the subsequent handling of LNG complies with the permitted-use and export/approval requirements.
Who Does This Legislation Apply To?
The exemption is expressly directed at Singapore LNG Corporation Pte. Ltd. It does not apply to other gas importers unless a separate exemption or licensing arrangement exists. The Order’s operative language is entity-specific, which is typical for commissioning-related regulatory relief.
In terms of operational scope, the Order applies to LNG imports for commissioning of equipment used at the defined LNG terminal. Accordingly, the practical applicability turns on (i) the identity of the importer, (ii) the facility involved, and (iii) the purpose of the import. If LNG is imported for a different purpose (for example, routine commercial supply rather than commissioning), the exemption would likely not cover it.
Why Is This Legislation Important?
This Order is important because it enables a major infrastructure project to proceed with regulatory certainty. LNG terminals require complex commissioning activities, including regasification and vessel-related operations (cooling down and gassing up). Without an exemption, the commissioning phase could be delayed or complicated by licensing constraints under the Gas Act.
At the same time, the Order is carefully constrained. The permitted-use limitations in paragraph 4(a) ensure that LNG imported under the commissioning exemption is not repurposed for unrelated activities. The export requirement for unused LNG in paragraph 4(b) prevents the exemption from functioning as a de facto authorisation to accumulate LNG beyond commissioning needs. The requirement to comply with EMA directions in paragraph 4(c) further ensures that the regulator retains control over import-related oversight.
For practitioners advising Singapore LNG Corporation Pte. Ltd. (or counsel reviewing compliance), the key practical implications are:
- Purpose-based compliance: document and evidence that imports are “for the purpose of commissioning” equipment used at the terminal.
- Use restrictions: ensure that regasified LNG is used only for operating the terminal, vessel cooling/gassing up, or sale subject to the relevant Gas Act provision.
- Unused LNG handling: implement operational controls to identify LNG not utilised in commissioning and ensure immediate export or obtain EMA approval for any alternative permitted use.
- Regulatory directions: treat EMA directions under section 63 as binding compliance requirements that may add procedural obligations.
Related Legislation
- Gas Act (Chapter 116A) — in particular, sections 6(1)(h), 6(1)(d), 8, 63 (as referenced in the Order)
- S 312/2013 — amendment to the Order with effect from 27 March 2013
- SL 32/2013 — the Singapore subsidiary legislation number associated with the Order (as shown in the timeline)
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.