Statute Details
- Title: Gas (Gas Importer’s Licence) (Exemption) Order 2018
- Act Code: GA2001-S12-2018
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Gas Act (Cap. 116A), section 8
- Approving Authority: Minister for Trade and Industry (Industry)
- Enacting Authority: Energy Market Authority of Singapore (EMA)
- Commencement: 1 January 2018
- Expiry: 28 January 2040 (in force until 2359 hours on that date)
- Key Operative Provision: Exemption from section 6(1)(h) of the Gas Act
- Key Section(s) in the Order: Sections 1 (Citation and commencement); 2 (Exemption)
What Is This Legislation About?
The Gas (Gas Importer’s Licence) (Exemption) Order 2018 is a targeted regulatory instrument made under the Gas Act (Cap. 116A). In plain terms, it creates a narrow exemption from the Gas Act’s licensing requirement for certain LNG importers. The exemption is not automatic for all market participants; it applies only to persons who meet specific contractual and compliance conditions.
The practical policy objective is to facilitate LNG import and storage arrangements that are time-bound and operationally linked to Singapore’s LNG infrastructure. The Order does this by relieving qualifying importers from the licensing consequence that would otherwise follow under section 6(1)(h) of the Gas Act. In effect, it reduces regulatory friction for importers who are already contractually committed to storage and send-out through Singapore LNG Corporation Pte Ltd, and who have demonstrated the ability to consume or send out LNG within the required timeframe.
Although the Order is “about” exemptions, it is best understood as a compliance-gated exception. It defines (i) who is eligible, (ii) what contractual arrangements must exist, and (iii) what past performance disqualifies a person from relying on the exemption. It also expressly excludes “ineligible persons” who hold certain licences under the Gas Act or the Electricity Act.
What Are the Key Provisions?
Section 1: Citation and commencement provides the formal identity and temporal scope of the Order. It states that the Order is the “Gas (Gas Importer’s Licence) (Exemption) Order 2018” and that it is in force from 1 January 2018 until 2359 hours on 28 January 2040. For practitioners, the expiry date matters because reliance on the exemption is time-limited; after the end date, the exemption will no longer be available unless replaced or extended by further subsidiary legislation.
Section 2: Exemption is the core operative provision. Section 2(1) states that section 6(1)(h) of the Gas Act does not apply to any person (subject to the “ineligible person” carve-out) that satisfies three cumulative conditions:
(a) Imports LNG. The exemption is limited to persons who import liquefied natural gas (LNG). This is a material scope limitation: it does not cover pipeline gas, local production, or other forms of gas supply.
(b) Has a qualifying contract with Singapore LNG Corporation Pte Ltd. On the date of import of the LNG, the person must have a contract with Singapore LNG Corporation Pte Ltd for storage and send-out of the LNG. The contract must commence no later than the import date and must not exceed 12 months, including any extension or renewal of the contract. This condition is designed to ensure that the exemption is tied to operational arrangements for storage and delivery, rather than being used for speculative or indefinite import positions.
(c) No failure to consume or send out within 12 months for previously imported LNG. The person must not, in respect of any LNG previously imported by the person (imported on or after 1 January 2018) to which sub-paragraph (b) applies, have failed to consume or send out the LNG within 12 months after the date of import. This is a performance-based condition. It effectively introduces a “look-back” compliance test: even if the person meets the contract requirement for a current import, the exemption can be denied if the person previously imported LNG under similar qualifying arrangements and did not meet the consumption/send-out timeline.
For lawyers advising clients, the key interpretive point is that sub-paragraph (c) is not limited to a single import; it applies to any LNG previously imported on or after 1 January 2018 that falls within the contractual framework described in sub-paragraph (b). Therefore, due diligence should include reviewing the client’s historical LNG import and operational records, and ensuring that contractual and operational obligations align with the 12-month consumption/send-out requirement.
Section 2(2): Definition of “ineligible person” sets out categories of persons who cannot benefit from the exemption, even if they otherwise satisfy the LNG import and contract/performance conditions. The Order defines an ineligible person as:
(a) A person holding certain Gas Act licences: a person that holds a licence mentioned in section 7(3)(a), (b) or (f) of the Gas Act.
(b) A person holding a specific Gas Act licence for importing LNG: a person that holds a licence mentioned in section 7(3)(h) of the Gas Act for importing LNG. This is particularly important: the exemption is meant to relieve licensing requirements for those who are not already licensed as LNG importers under that provision.
(c) A person holding certain Electricity Act licences: a person that holds a licence mentioned in section 9(1)(b), (ba), (e) or (g) of the Electricity Act (Cap. 89A). This cross-sector reference indicates that the exemption is designed to prevent certain electricity market participants from using the LNG import exemption to circumvent licensing controls.
In practice, this means that eligibility analysis should begin with licence status. A client’s existing regulatory authorisations under both the Gas Act and the Electricity Act may automatically disqualify them. For counsel, this is a classic “threshold” issue: if the client is an ineligible person, the exemption cannot be relied upon, and the client must consider whether a gas importer’s licence (or another regulatory pathway) is required.
Interplay with section 6(1)(h) of the Gas Act: while the Order excerpt does not reproduce section 6(1)(h), it clearly operates as a disapplication. The legal effect is that the licensing requirement (or prohibition) in section 6(1)(h) is not applicable to qualifying persons. Practitioners should therefore read the exemption alongside the underlying Gas Act provision to understand the exact licensing consequence being removed—whether it is a requirement to hold a licence before importing LNG, or a restriction on import activities absent authorisation.
How Is This Legislation Structured?
The Order is structured in a simple format typical of subsidiary legislation: a short enacting framework followed by operative provisions. It contains:
Section 1 (Citation and commencement) — identifies the instrument and sets the start and end dates of operation.
Section 2 (Exemption) — provides the substantive exemption from the Gas Act licensing provision, including eligibility conditions and the definition of “ineligible person”.
There are no additional parts or complex schedules in the provided text. The legal work therefore focuses on interpreting the conditions in section 2 and mapping them to the Gas Act and Electricity Act licence categories referenced in section 2(2).
Who Does This Legislation Apply To?
The exemption applies to “any person” that imports LNG and meets the contractual and performance conditions in section 2(1), provided that the person is not an ineligible person as defined in section 2(2). The phrase “any person” is broad and can include companies, partnerships, and other legal entities capable of holding contracts and importing LNG.
However, the exemption is not available to persons who hold certain licences under the Gas Act or the Electricity Act. Accordingly, the Order’s practical applicability depends heavily on a client’s existing licensing portfolio. For example, an entity already licensed for importing LNG under the Gas Act is expressly treated as ineligible for the exemption. Similarly, certain electricity licensees are excluded. Counsel should therefore conduct a licence mapping exercise before advising on reliance on the exemption.
Why Is This Legislation Important?
This Order is important because it provides a structured regulatory “escape hatch” from the Gas Act licensing regime for a defined class of LNG importers. For market participants, the ability to import LNG without triggering the licensing requirement can affect commercial timelines, transaction costs, and contracting strategies—particularly where LNG imports are linked to short-term storage and send-out arrangements.
The exemption’s design also reflects regulatory risk management. By requiring a contract with Singapore LNG Corporation Pte Ltd for storage and send-out (and limiting the contract duration to 12 months), the Order ensures that exempt importers are operationally integrated into the LNG supply chain. The performance condition in section 2(1)(c) further discourages inefficient or non-performing import behaviour by denying the exemption to persons who previously failed to consume or send out LNG within the required 12-month window.
From an enforcement and compliance perspective, the “ineligible person” definition is a critical gatekeeper. It prevents certain already-regulated entities from using the exemption to avoid licensing obligations. In practice, this means that legal advice should not stop at confirming LNG imports and the existence of a qualifying contract; it must also confirm that the client does not fall within the excluded licence categories under both the Gas Act and the Electricity Act.
Finally, the Order’s long duration (from 2018 to 2040) means it is likely to remain relevant for multi-year LNG contracting cycles. Practitioners should therefore consider how the exemption interacts with future regulatory changes, and whether any amendments or replacements occur before the expiry date.
Related Legislation
- Gas Act (Cap. 116A) — in particular section 6(1)(h) (licensing provision being disapplied) and section 8 (power to make the Order)
- Electricity Act (Cap. 89A) — referenced in the definition of “ineligible person” (section 9(1)(b), (ba), (e), (g))
- Timeline / Legislation history — for confirming the applicable version and any amendments (as indicated by the legislation portal timeline)
Source Documents
This article provides an overview of the Gas (Gas Importer’s Licence) (Exemption) Order 2018 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.