SINGAPORE: The Singapore government may establish an organization to centralize the procurement and supply of oil for the energy sector in an effort to prevent erratic swings in electricity prices brought on by energy shortages.
The organization, Gasco, will combine gas demand from power generation companies( gencos ), which currently choose the quantity and tenure of gas to purchase based on their individual commercial factors. & nbsp,
A stable and secure power system was essential for the transition to net zero emissions, according to Minister for Trade and Industry Gan Kim Yong, who unveiled the centralized gas procurement framework in his opening speech on Monday( Oct 23 ) at Singapore International Energy Week( SIEW ).
Mr. Gan stated that decarbonization efforts were in jeopardy in his discourse to industry experts and decision-makers. & nbsp,
The minister said,” We noticed this during the current global energy crisis, when some nations had to use coal refiring to lower energy rates.” & nbsp,
As the electricity shift advanced, he said, there would probably be more instances of uncertainty in the world. & nbsp,
Our present fuel procurement platform, which relies on the procurement strategies of personal power generation companies, does not guarantee that the system will have enough gas to meet our needs during a crisis when market conditions are ambiguous, according to recent experience.
We need to reconsider how we approach fuel procurement because the energy transition is expected to make the world gas market more dangerous.
Given that 95 % of Singapore’s electricity is produced using organic oil, Mr. Gan emphasized the need for safe and dependable oil products.
Singapore International Energy Week & nbsp is an annual event that is in its 16th iteration this year. At the Marina Bay Sands Sand Expo and Convention Center, it will be open through Friday.