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Singapore to Establish Fuel Reserves as Energy Crunch Hits

   By Yongchang Chin 
 

Singapore will establish standby fuel facilities for domestic power-generating companies to draw upon, in a bid to address a tight natural-gas market as prices of the fuel rise, the country's Energy Market Authority said Tuesday.

The EMA said it was working closely with all power-generating companies to track their fuel supply levels and generating capacity, and would provide fuel reserves to them if supplies are affected.

It has also informed the companies to contract sufficient natural gas--which 95% of Singapore's electricity is produced from--to meet the demands of their retail customers. Any excess natural gas will need to be offered to other Singapore power companies or the EMA, with the right of first refusal, before they can sell the excess supply to other parties.

The EMA said these measures are pre-emptive and that "Singapore's overall gas supplies remain sufficient."

"EMA is monitoring the Singapore Wholesale Electricity Market closely and will intervene if necessary," it said, adding that it will look into whether these measures are still needed by end-March next year.

 

Write to Yongchang Chin at yongchang.chin@wsj.com

 

(END) Dow Jones Newswires

October 19, 2021 06:44 ET (10:44 GMT)

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