Statute Details
- Title: Gas (Gas Transporter’s Licence) (Exemption) (No. 2) Order
- Act Code: GA2001-OR2
- Legislative Type: Subsidiary Legislation (SL)
- Authorising Act: Gas Act (Chapter 116A, Section 8)
- Citation: Gas (Gas Transporter’s Licence) (Exemption) (No. 2) Order
- Key Provisions: Section 1 (Citation); Section 2 (Exemption from section 6(1)(a) of the Gas Act)
- Current Version Status: Current version as at 27 Mar 2026 (per provided extract)
- Original Issuance: 27 Jul 2007 (G.N. No. S 401/2007)
- Revised Edition: 1 Jun 2009 (2009 RevEd)
What Is This Legislation About?
The Gas (Gas Transporter’s Licence) (Exemption) (No. 2) Order is a targeted regulatory instrument made under the Gas Act. In plain terms, it creates a specific exemption from the licensing requirement that would otherwise apply to a gas transporter. Rather than establishing a general licensing regime, this Order operates as a narrow carve-out for a named entity and a defined activity.
Under the Gas Act, the baseline rule is that a person who conveys gas through pipelines is generally required to hold a transporter’s licence. This Order modifies that baseline by exempting Sembcorp Gas Pte Ltd from the relevant licensing obligation when it conveys gas through onshore gas pipelines owned by it. The practical effect is that, for that particular category of pipeline and activity, Sembcorp Gas Pte Ltd does not need to obtain a transporter’s licence to lawfully convey gas.
Because the exemption is both person-specific (it names Sembcorp Gas Pte Ltd) and activity-specific (it is limited to conveying gas through onshore pipelines owned by the company), the Order should be read as a precise legal permission rather than a broad relaxation of the Gas Act. For practitioners, the key legal work is therefore to map the exemption’s conditions to the facts of any proposed or existing pipeline operations.
What Are the Key Provisions?
Section 1 (Citation) provides the formal short title of the instrument. While this is not substantive regulation, citation provisions are important for legal referencing, compliance documentation, and for identifying the correct subsidiary legislation when advising clients or drafting submissions to regulators.
Section 2 (Exemption from section 6(1)(a) of Act) is the operative clause. It states that Sembcorp Gas Pte Ltd “shall be exempted from section 6(1)(a) of the Act when it conveys gas through any onshore gas pipeline owned by it.” This is the entire substantive content of the Order as reflected in the extract. The exemption is therefore best understood as a conditional legal status: it applies only when both the conveying activity and the pipeline ownership and location criteria are satisfied.
There are three core elements embedded in Section 2:
- Named beneficiary: the exemption is granted to Sembcorp Gas Pte Ltd (not to a group of companies, not to successors automatically, and not to other operators).
- Triggering activity: the exemption applies when Sembcorp Gas Pte Ltd conveys gas. Practically, this means the company is performing the transportation function contemplated by the Gas Act licensing framework.
- Defined infrastructure: the exemption applies only when the conveyance is through any onshore gas pipeline owned by it. The phrase “any” suggests coverage across multiple onshore pipelines, but the ownership and onshore characteristics are limiting conditions.
Legal implications of “owned by it” and “onshore gas pipeline” are particularly important for compliance and risk management. If a pipeline is not owned by Sembcorp Gas Pte Ltd (for example, if it is operated under an arrangement with a third-party owner, or if ownership is held by another entity), the exemption may not apply. Similarly, if the pipeline segment is not “onshore” (for example, if it includes offshore components or crosses into areas that are characterised differently under regulatory definitions), the exemption could be contested. A practitioner should therefore verify the asset register, title documents, and technical classification of pipeline segments.
Finally, the exemption is expressly from section 6(1)(a) of the Gas Act. While the extract does not reproduce the Gas Act text, this cross-reference indicates that the licensing requirement being exempted is specifically the one set out in that provision. In practice, lawyers should confirm whether other obligations in the Gas Act (such as safety, operational standards, reporting, incident notification, or other regulatory duties) remain applicable even where licensing is exempted. An exemption from licensing does not automatically mean exemption from all regulatory controls unless the enabling legislation or the exemption order expressly provides so.
How Is This Legislation Structured?
This Order is extremely concise and consists of two sections:
- Section 1: Citation (how the Order may be referred to).
- Section 2: The substantive exemption, specifying the beneficiary (Sembcorp Gas Pte Ltd) and the conditions (conveying gas through onshore gas pipelines owned by it) and the legal effect (exempted from section 6(1)(a) of the Gas Act).
There are no additional parts, schedules, conditions, reporting requirements, or procedural provisions in the extract. That structure reinforces that the instrument is designed as a narrow legal carve-out rather than a comprehensive regulatory framework.
Who Does This Legislation Apply To?
The Order applies to Sembcorp Gas Pte Ltd in relation to its gas conveyance activities. It does not create a general exemption for all gas transporters, nor does it apply to other entities unless they are the named beneficiary.
Its practical scope is limited to situations where Sembcorp Gas Pte Ltd conveys gas through onshore gas pipelines that it owns. Therefore, even within Sembcorp Gas Pte Ltd’s business, the exemption is not necessarily universal. If the company conveys gas through pipelines that it does not own, or through infrastructure that is not properly characterised as “onshore,” the licensing requirement in the Gas Act may still apply.
Why Is This Legislation Important?
For practitioners, the importance of this Order lies in how it affects licensing risk and regulatory compliance strategy. Licensing requirements are often central to how regulated activities are structured, documented, and audited. By exempting Sembcorp Gas Pte Ltd from section 6(1)(a) in a defined scenario, the Order reduces the need for a transporter’s licence for those specific pipeline conveyance operations.
However, the exemption’s narrow drafting also creates fact-sensitive legal boundaries. Lawyers advising on pipeline projects, corporate restructuring, asset transfers, or operational changes must ensure that the exemption conditions continue to be met. For example, if ownership of a pipeline changes hands, or if a pipeline segment is reclassified, the exemption may cease to apply. In such circumstances, the company could become exposed to licensing non-compliance unless alternative authorisations are obtained.
From an enforcement and governance perspective, the Order also highlights the regulatory approach in Singapore: licensing is the default for gas conveyance, but targeted exemptions may be granted where appropriate. This can reflect considerations such as the nature of the pipeline network, ownership arrangements, and the regulator’s assessment of risk and oversight. Practitioners should therefore treat the exemption as part of a broader compliance landscape under the Gas Act, not as a standalone permission that eliminates all regulatory duties.
Related Legislation
- Gas Act (Chapter 116A) — in particular, section 6(1)(a) (licensing requirement) and section 8 (enabling provision for making exemptions via subsidiary legislation).
Source Documents
This article provides an overview of the Gas (Gas Transporter’s Licence) (Exemption) (No. 2) Order for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.