Statute Details
- Title: Gas (Gas Shipper’s Licence) (Exemption) Order 2013
- Act / Instrument Code: GA2001-S33-2013
- Type: Subsidiary Legislation (SL)
- Enacting Authority: Energy Market Authority of Singapore (EMA)
- Authorising Act: Gas Act (Chapter 116A)
- Legal Basis: Powers conferred by section 8 of the Gas Act
- Approval Requirement: Made with the approval of the Second Minister for Trade and Industry (portfolio relating to regulation of energy utilities)
- Citation: SL 33/2013
- Commencement: 25 January 2013
- Key Provisions: Section 2 (Definitions); Section 3 (Exemption from section 6(1)(c) of the Gas Act)
- Status: Current version as at 27 March 2026 (per the provided extract)
What Is This Legislation About?
The Gas (Gas Shipper’s Licence) (Exemption) Order 2013 is a targeted regulatory instrument that grants a specific exemption from the licensing requirement applicable to “shippers” of gas under the Gas Act (Chapter 116A). In practical terms, it allows a named entity—Singapore LNG Corporation Pte. Ltd.—to ship a particular category of gas without needing to comply with the relevant licensing provision for a long, defined period.
The exemption is narrow in scope. It does not create a general licence-free regime for all LNG activities. Instead, it is confined to the shipping of “commissioning gas” (defined as LNG that is regasified during the commissioning of equipment at a specified LNG terminal) from a particular LNG terminal address to the premises of a particular end-user, YTL PowerSeraya Pte Ltd. The Order therefore functions as a compliance carve-out for a specific operational phase (commissioning) and a specific supply chain (terminal to end-user).
From a legal and regulatory perspective, the Order is best understood as an administrative tailoring of statutory obligations. It relies on the Gas Act’s enabling power (section 8) permitting exemptions, and it imposes a continuing regulatory obligation: the exempted shipper must comply with directions issued by the Authority under section 63 of the Gas Act. This ensures that, even where licensing is exempted, safety, system integrity, and regulatory oversight remain intact.
What Are the Key Provisions?
Section 1 (Citation and commencement) provides the formal identity of the instrument and its effective date. The Order may be cited as the Gas (Gas Shipper’s Licence) (Exemption) Order 2013 and comes into operation on 25 January 2013. For practitioners, this matters because the exemption period begins on that date and is tied to the statutory compliance timeline for the commissioning and shipping activities.
Section 2 (Definitions) defines two critical terms that delimit the exemption’s scope:
- “commissioning gas” means LNG which is regasified in the process of commissioning any equipment used at the LNG terminal. This definition is operational and process-based: the gas must be LNG that is regasified specifically as part of commissioning activities, not merely any LNG supply.
- “LNG terminal” means the LNG terminal situated at 6 Meranti View, Singapore 627600. This is a geographic limitation. Even if commissioning gas is regasified elsewhere, the exemption is anchored to this terminal location.
These definitions are central to avoiding overbreadth. They ensure that the exemption is not interpreted as covering all LNG shipping from all terminals or all LNG regasification activities.
Section 3 (Exemption from section 6(1)(c) of the Act) is the operative provision. Section 3(1) states that, subject to the condition in sub-paragraph (2), section 6(1)(c) of the Gas Act shall not apply to Singapore LNG Corporation Pte. Ltd. for a defined period in respect of the shipping of commissioning gas from the specified LNG terminal to the premises of YTL PowerSeraya Pte Ltd at 3 Seraya Avenue, Singapore 628209.
The exemption period is exceptionally long: between 25 January 2013 and 28 January 2040 (both dates inclusive). This is a notable feature for counsel advising on compliance risk. While commissioning is often thought of as a shorter phase, the Order’s duration suggests that the regulatory framework anticipates extended commissioning-related activities or a long-term arrangement that may include commissioning gas shipping within that window. Practitioners should therefore treat the exemption as a continuing legal permission for the specified shipping activity throughout the stated period, rather than as a short-lived temporary measure.
Section 3(2) (Condition: compliance with Authority directions) requires Singapore LNG Corporation Pte. Ltd. to comply with all directions issued by the Authority in relation to the shipping of gas pursuant to section 63 of the Act. This is the key continuing compliance obligation. Even though the shipper is exempted from the licensing provision in section 6(1)(c), it remains subject to regulatory control through directions. In practice, this means that operational, safety, scheduling, reporting, and other compliance requirements may still be imposed by EMA through formal directions under the Gas Act.
For lawyers, the interaction between the exemption and section 63 directions is crucial. The exemption removes one statutory requirement (licensing under section 6(1)(c)), but it does not remove the Authority’s power to regulate shipping activities through directions. Advising clients should therefore include a review of any EMA directions issued under section 63 that relate to the exempted shipping activity.
How Is This Legislation Structured?
This Order is structured as a short, three-section instrument:
- Section 1 sets out the citation and commencement.
- Section 2 provides definitions that define the scope of “commissioning gas” and the relevant “LNG terminal”.
- Section 3 contains the substantive exemption, including the time period, the named parties, the shipping route (terminal to premises), and the condition requiring compliance with Authority directions.
There are no additional parts or complex procedural provisions in the extract provided. The instrument is designed to be precise and narrow, with the exemption’s boundaries largely determined by the definitions and the specific addresses and entities named in section 3.
Who Does This Legislation Apply To?
The exemption applies to Singapore LNG Corporation Pte. Ltd. It is a person-specific exemption: the Order expressly states that section 6(1)(c) of the Gas Act shall not apply to that company for the specified period and activity. As such, other LNG shippers or entities are not automatically covered by the exemption.
The Order also identifies the destination premises and the end-user—YTL PowerSeraya Pte Ltd at 3 Seraya Avenue, Singapore 628209. While the exemption is framed as a relief from a licensing obligation for the shipper, the named destination provides context for the regulated supply chain. Practitioners should note that the exemption is not merely about the end-user; it is about the shipper’s ability to ship commissioning gas for the defined terminal-to-premises movement.
Finally, the Order binds the exempted shipper through the condition in section 3(2): compliance with EMA directions under section 63. Therefore, while the exemption is granted to a specific company, the regulatory relationship remains active between that company and the Authority.
Why Is This Legislation Important?
This Order is important because it demonstrates how Singapore’s gas regulatory framework can be calibrated to accommodate specific operational realities—here, the shipping of regasified LNG used in commissioning activities. For practitioners advising on LNG projects, terminal commissioning, or gas supply arrangements, the Order provides a clear legal basis to manage licensing obligations for a defined activity and route.
From a compliance standpoint, the Order reduces licensing friction for the exempted shipper. However, it does not eliminate regulatory oversight. The condition requiring compliance with EMA directions under section 63 means that the exempted shipper must still implement whatever operational and regulatory controls the Authority imposes. Counsel should therefore treat the exemption as a “licensing relief” rather than a “regulatory waiver.”
The long duration (up to 28 January 2040) is also significant. It suggests that the exemption is intended to support a continuing arrangement or recurring commissioning-related shipping activities. For contract drafting and risk allocation, parties should consider whether their commercial terms assume ongoing exemption coverage and how they would respond if EMA issues directions that materially affect operations, costs, or scheduling.
Finally, the precision of the definitions and the specificity of addresses and entities make this Order a useful reference point when interpreting the boundaries of similar exemptions. If a project deviates from the defined terminal location, the defined commissioning gas process, or the defined destination premises, the exemption may not apply. Lawyers should therefore conduct a fact-specific assessment against the statutory language.
Related Legislation
- Gas Act (Chapter 116A) — in particular:
- Section 6(1)(c) (licensing requirement from which the exemption is granted)
- Section 8 (power to make exemptions)
- Section 63 (Authority’s power to issue directions relating to shipping of gas)
Source Documents
This article provides an overview of the Gas (Gas Shipper’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.