Statute Details
- Title: Gas (Singapore LNG Corporation Pte. Ltd. — Exemption) Order 2022
- Act Code: GA2001-S221-2022
- Legislation Type: Subsidiary legislation (Order)
- Authorising Act: Gas Act 2001
- Enacting Authority: Energy Market Authority of Singapore (EMA), with the approval of the Minister for Trade and Industry
- Commencement: 28 March 2022
- Order Date: Made on 25 March 2022
- Legislative Instrument Number: S 221/2022
- Status: Current version as at 27 March 2026
- Key Provision: Exemption from section 6(1)(h) of the Gas Act 2001 for specified LNG import purposes
What Is This Legislation About?
The Gas (Singapore LNG Corporation Pte. Ltd. — Exemption) Order 2022 (“Order”) is a targeted regulatory exemption made under the Gas Act 2001. In plain terms, it allows Singapore LNG Corporation Pte. Ltd. (“SLNG”) to import liquefied natural gas (LNG) for a specific strategic purpose—building and maintaining a “standby LNG inventory”—without being constrained by a particular requirement in the Gas Act.
The Order is narrow in scope. It does not create a general licensing regime or overhaul the Gas Act. Instead, it temporarily suspends the application of one statutory provision—section 6(1)(h) of the Gas Act 2001—to SLNG, but only for a defined period and only for LNG imports made to establish and maintain a standby inventory of an amount determined by the Authority (EMA). The exemption runs from 28 March 2022 to 28 January 2040 (both dates inclusive).
For practitioners, the key point is that this is an “exemption order” rather than a standalone regulatory framework. It operates as a legal carve-out from the Gas Act’s baseline requirements, enabling SLNG to carry out long-term energy security planning and LNG stockholding activities that may otherwise fall within the scope of section 6(1)(h).
What Are the Key Provisions?
Section 1: Citation and commencement provides the formal identity of the instrument and when it takes effect. The Order is cited as the Gas (Singapore LNG Corporation Pte. Ltd. — Exemption) Order 2022 and comes into operation on 28 March 2022. This matters for compliance timelines, especially where regulated activities might have started or been planned around the effective date.
Section 2: Exemption from section 6(1)(h) of the Gas Act is the operative provision. It states that section 6(1)(h) of the Gas Act 2001 does not apply to SLNG for the period between 28 March 2022 and 28 January 2040 (inclusive). The exemption applies in respect of the import of LNG for the purpose of establishing and maintaining a standby LNG inventory.
The Order further limits the exemption by tying the inventory amount to an external determination: the standby inventory must be “of such amount as the Authority determines is necessary for enhancing energy supply security in Singapore.” This introduces an administrative determination element. While the Order itself sets the legal carve-out, EMA retains the role of assessing and determining the necessary inventory level for energy security purposes.
From a legal risk perspective, the exemption is therefore conditional in two ways: (1) the activity must be LNG import for the specified purpose (standby inventory), and (2) the inventory amount must align with the Authority’s determination. If SLNG were to import LNG for a different commercial purpose, or if the inventory exceeded (or fell outside) what EMA has determined as necessary, the exemption would not necessarily protect those activities. Practitioners advising SLNG would typically want to ensure that internal compliance documentation clearly maps import volumes and inventory holdings to the standby inventory purpose and to EMA’s determinations.
How Is This Legislation Structured?
The Order is extremely concise and consists of a short enacting formula and two substantive provisions:
(a) Section 1 sets out the citation and commencement date.
(b) Section 2 provides the exemption, specifying (i) the Gas Act provision being disapplied (section 6(1)(h)), (ii) the exempt entity (SLNG), (iii) the time period (28 March 2022 to 28 January 2040), and (iv) the scope of the exemption (import of LNG for establishing and maintaining a standby LNG inventory of an amount determined by EMA as necessary for energy supply security).
There are no schedules, no detailed procedural requirements, and no additional definitions in the extract provided. The Order’s structure reflects its function as a targeted legal carve-out rather than a comprehensive regulatory instrument.
Who Does This Legislation Apply To?
The exemption is directed specifically at Singapore LNG Corporation Pte. Ltd. It does not appear to apply to other LNG importers, traders, or gas market participants. The legal effect is that section 6(1)(h) of the Gas Act 2001 is disapplied to SLNG for the specified period and purpose.
In practical terms, the Order’s applicability is both person-specific (SLNG only) and activity-specific (LNG import for standby inventory). Even within SLNG’s operations, the exemption is best understood as covering only those import activities that are linked to establishing and maintaining the standby LNG inventory at the level determined by EMA for energy supply security. Lawyers advising SLNG should therefore consider whether SLNG’s LNG procurement and inventory management arrangements are structured so that the “standby inventory” component is clearly identifiable and auditable.
Why Is This Legislation Important?
This Order is important because it supports long-term energy supply security planning in Singapore’s gas market. LNG stockholding can be a strategic measure to mitigate risks such as supply disruptions, shipping delays, or global market volatility. However, regulatory frameworks often impose constraints that may not be well-suited to long-horizon inventory strategies. By exempting SLNG from the application of section 6(1)(h), the Order enables SLNG to import LNG for standby inventory purposes over a multi-decade period.
The long duration—extending to 28 January 2040—signals that the policy objective is not short-term operational flexibility but rather a stable legal basis for energy security measures. For practitioners, this affects contract structuring, procurement planning, and regulatory engagement. Parties dealing with SLNG (for example, counterparties involved in LNG procurement, storage, regasification, or related logistics) may need to understand that SLNG’s ability to import LNG for standby inventory is supported by a statutory exemption for the relevant period.
From an enforcement and compliance standpoint, the Order also highlights the role of EMA’s determination of the necessary inventory amount. While the extract does not specify the process for that determination, the legal text makes it a central condition. Accordingly, lawyers should anticipate that EMA determinations (and any updates or reviews) could be critical to ongoing compliance. If EMA adjusts the necessary inventory level, SLNG’s inventory management and reporting practices would likely need to reflect those changes to remain within the exemption’s intended scope.
Finally, the Order illustrates how Singapore uses subsidiary legislation to fine-tune the application of primary legislation. Rather than amending the Gas Act itself, the Government and EMA use an exemption order to achieve targeted outcomes while preserving the overall structure of the Gas Act 2001.
Related Legislation
- Gas Act 2001 (including section 6(1)(h), and section 8 as the authorising provision for making exemption orders)
Source Documents
This article provides an overview of the Gas (Singapore LNG Corporation Pte. Ltd. — Exemption) Order 2022 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.