With the liberalisation of the electricity market over the years, electricity generation companies have turned to more efficient ways of generating electricity, such as using natural gas in combined cycle gas turbines.
Today, about 95 per cent of Singapore's electricity demand is fulfilled by electricity generated from natural gas. As a result, the gas industry plays a vital role in fostering healthy competition in the electricity market.
Gas consumers are classified into large consumers and retail consumers.
Large consumers are typically electricity generation companies and large industrial users of gas who take gas from the gas transmission network. They will make arrangements with the gas transporter via a gas shipper to convey gas to their premises.
Retail consumers, such as households and small non-domestic users of gas, mainly use gas for cooking and heating purposes. These consumers purchase gas from gas retailers, who will arrange with the gas transporter for the conveyance of gas to the consumers' premises.