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)
- Current Status: Current version as at 27 Mar 2026
- Commencement: Not stated in the extract (the Order is shown as revised edition dated 1 Jun 2009, with original made on 27 Jul 2007)
- Key Provisions: Section 1 (Citation); Section 2 (Exemption from section 6(1)(a) of the Gas Act)
- Related Legislation: Gas Act (Cap. 116A), particularly sections 6(1)(a) and 8
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.
Under the Gas Act framework, entities that convey gas through pipelines are generally required to hold a licence. However, Parliament has authorised the making of subsidiary legislation to carve out exemptions in appropriate circumstances. This Order is one such exemption: it applies to a particular company—Sembcorp Gas Pte Ltd—and it is limited to a defined activity and infrastructure type.
Practically, the Order reduces regulatory friction for the exempted entity by removing the need to obtain a licence for the specified conveyance activity. At the same time, because the exemption is narrow and expressly tied to “onshore gas pipeline owned by it,” the legal effect is not a blanket deregulation of all gas transportation activities by the company.
What Are the Key Provisions?
Section 1 (Citation) provides the formal name by which the Order may be cited. While this is standard drafting, it matters for legal referencing in submissions, compliance audits, and regulatory correspondence. When advising clients, practitioners often need to cite the exact instrument to support the existence and scope of an exemption.
Section 2 (Exemption from section 6(1)(a) of Act) is the operative provision. 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.
Although the extract does not reproduce section 6(1)(a) of the Gas Act, the structure of the exemption indicates that section 6(1)(a) contains the licensing obligation for gas transporters. The exemption therefore functions as an exception to the requirement to hold a transporter’s licence for the specified conveyance activity.
Scope limitations are crucial. The exemption is confined by two key qualifiers:
- Entity-specific: it applies to Sembcorp Gas Pte Ltd only. Other companies cannot rely on the exemption.
- Activity and infrastructure-specific: the exemption applies only when the company conveys gas through onshore gas pipelines that it owns. If the company conveys gas through pipelines it does not own (e.g., pipelines owned by another party, or pipelines under a different ownership arrangement), the exemption may not apply.
“Onshore gas pipeline” is also a meaningful boundary. In gas infrastructure, “onshore” typically distinguishes pipelines located on land from offshore pipelines. The exemption’s wording suggests that conveyance through offshore pipelines would fall outside the exemption, even if the pipeline is owned by the company.
“Owned by it” is another boundary that may require factual and contractual analysis. Ownership can be affected by corporate restructuring, asset transfers, joint ventures, and security interests. For legal practice, this means that reliance on the exemption should be supported by documentary evidence (e.g., title records, asset registers, or contractual arrangements demonstrating ownership).
Finally, the Order is labelled “(No. 2)”, implying there may be earlier exemption orders (e.g., “(No. 1)”) or other exemptions for different entities or activities. For practitioners, this is a reminder to check the full exemption landscape to ensure there is no overlap, supersession, or differing scope.
How Is This Legislation Structured?
This Order is extremely short and consists of two sections:
- Section 1 sets out the citation.
- Section 2 creates the exemption and specifies its scope.
There are no schedules, definitions, or additional procedural provisions in the extract. The legal effect is therefore direct: the exemption applies automatically to the specified entity and activity, subject to the textual limitations described above.
Who Does This Legislation Apply To?
The Order applies to Sembcorp Gas Pte Ltd in relation to its gas conveyance activities. It does not apply to other gas transporters, even if they operate similar pipelines.
In addition, the exemption is conditional on the conveyance being carried out through onshore gas pipelines owned by Sembcorp Gas Pte Ltd. Accordingly, the practical applicability depends on the factual circumstances of the pipeline infrastructure used for conveyance. If the company conveys gas through pipelines that are not “owned by it,” or through offshore pipelines, the exemption may not cover those operations.
Why Is This Legislation Important?
For practitioners, the importance of this Order lies in its ability to affect licensing compliance and regulatory risk. If a company is exempted from the licensing requirement for a particular activity, it may not need to apply for or maintain a transporter’s licence for that activity. This can influence corporate compliance programmes, internal governance, and how regulatory filings are prepared.
However, because the exemption is narrow, it also creates a boundary-management problem. Legal teams advising Sembcorp Gas Pte Ltd (or counterparties contracting with it) must ensure that the company’s conveyance activities remain within the exemption’s terms. For example, if pipeline ownership changes, if assets are transferred to a subsidiary, or if the company begins using third-party pipelines, the exemption may no longer apply to those new arrangements.
From an enforcement perspective, the exemption reduces the scope of what regulators can treat as a licensing breach for the covered activity. But it does not necessarily eliminate other regulatory obligations under the Gas Act or related regulations (such as safety, operational standards, reporting, or consumer protection requirements). Therefore, the exemption should be understood as licensing-specific, not as a general permission to operate without regulatory oversight.
Finally, the Order’s existence illustrates how Singapore’s gas regulatory regime balances licensing with flexibility. Exemptions may be granted where the policy rationale for licensing is satisfied through other mechanisms (for instance, existing regulatory oversight, ownership and control of infrastructure, or other public interest considerations). For lawyers, this means that exemption instruments should be read alongside the broader statutory scheme rather than in isolation.
Related Legislation
- Gas Act (Chapter 116A) — particularly:
- Section 6(1)(a) (licensing requirement for gas transporters, as referenced by this Order)
- Section 8 (authorising provision enabling 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.