Basic information
Outline of the system
The import of piped natural gas (PNG) and liquefied natural gas (LNG) except for PNG/LNg that are in transit or are to be transhipped,is regulated by the Energy Market Authority, and requires a valid Gas Importer Licence and Gas Importer (LNG) Licence respectively, unless otherwise exempted by the EMA. Imports of spot LNG (i.e. contracts for supply shorter than one year), as well as LNG that is not intended to be conveyed into Singapore's gas supply system and used only for bunkering or the provision of associated gas-up and cool down services, and exempted from licensing.
Product coverage
The licensing system applies to PNG, and Term LNG (contracts for supply for at least 1 year).
Nature of licensing
Automatic
If Automatic, administrative purpose
Non-Automatic
If Non-Automatic, description of the notified Non-Automatic Licensing regime
Products under restriction as to the quantity or value of imports
The licensing scheme is not intended to restrict the quantity or value of imports. EMA's import licences are maintained to ensure energy security and promote competitively priced supply. Under the Gas Act, the import of natural gas requires a licence, and licences allow us to include conditions that ensure that the importers meet certain requirements such as reliability and safety.
Questions for products under restriction as to the quantity or value of imports
Please see Answers 6.1-6.11.
The system applies to products originating from which country?
The licensing system applies to products originating in and coming from all countries.
Expected duration of licensing procedure
Legal requirements
Is the licensing statutorily required?
The licensing procedures are maintained under the Gas Act. All import licensing procedures are statutorily required and published in government gazettes.
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
While the administration of the licensing system is undertaken by EMA, the designation of products to be subjected to licensing and the abolishment of the licensing system require legislative approval.
Is it possible for the government to abolish the system without legislative approval?
While the administration of the licensing system is undertaken by EMA, the designation of products to be subjected to licensing and the abolishment of the licensing system require legislative approval.
Eligibility of applicants
Is there a system of registration of persons or firms permitted to engage in importation?
What persons or firms are eligible to apply for a licence?
Generally, all persons, registered firms and institutions are eligible to apply for the Gas Importer Licence. In determining whether to grant a licence to or for a particular person, EMA will consider the factors stipulated under the Gas Act (e.g. ability of that person to finance the carrying on of the particular activity etc.).
Is there a registration fee?
There is no registration fee.
Is there a published list of authorized importers?
Contact point for information on eligibility
Ministry/Authority
Address
Telephone
Fax
E-mail address
Website
Contact officer
Submission of an application
Administrative body(ies) for submission of an application
Energy Market Authority (EMA)
Documentation requirements
What information is required in applications?
For application of the Gas Importer Licence, the required information includes particulars of the applicant and the applicant’s directors, and details of the gas importation business (e.g. commencement date of gas importing, quantities of natural gas to be imported, and purpose of the imported gas).
What documents is the importer required to supply with the application?
The submission of the following documents is required:
(a) Certified true copies of the Applicant’s Certificate of Incorporation;
(b) Certified true copies of relevant ownership documents;
(c) Certified true copies of the Applicant's gas sale agreements / gas contracts with its gas suppliers;
(d) Audited past profit and loss statements, balance sheets and cash flow statements, credit statements or credit rating (if any), including any history of bankruptcy or financial distress of the Applicant or the significant shareholders for the last 2 full financial years or since incorporation;
(e) Organisation chart including resume and curriculum vitae (CV) of key appointment holders; and
(f) Description of the business plan, including details such as the purpose of importing such gas, the source of gas, customers, volumes to be imported on a daily and annual basis and the import duration.
Window of submission of an application
How far in advance of importation must application for a licence be made?
Application for LNG import licences follow the RFP timeline set by EMA.
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
There are no limitations on the period of the year during which applications for a Gas Importer Licence and/or importation of natural gas may be made.
For Gas Importer (LNG) Licence, submission of application will be done so under the RFP held by EMA.
Issuing the license
Can a licence be granted immediately on request?
EMA will use reasonable endeavours to expedite licence requests if requested.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
As for PNG import, EMA responds to such licence applications as soon as possible.
Which administrative body is responsible for approving application of licences?
Consideration of the Gas Importer Licence application is effected by EMA.
Must the applications be passed on to other organs for visa, note or approval?
Applicants do not have to approach more than one administrative body.
Are there any other conditions attached to the issue of a licence?
Licensees are required to declare annually whether they have complied with all the conditions set out in the licence.
Fees and other administrative charges
Is there any licensing fee or administrative charge?
Importers may obtain information regarding the licensing fees from EMA’s website, or by contacting EMA directly.
What is the amount of the fee or charge?
Is there any deposit or advance payment required associated with the issue of licences?
There are no deposit or advance payment requirements associated with the issuance of licences.
Amount or rate?
Is it refundable?
What is the period of retention?
What is the purpose of this requirement?
Refusal of an application
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
An application for an import licence is usually granted if it meets the stipulated criteria.
Are the reasons for any refusal given to applicants?
EMA will generally provide the reason(s) in the event of a refusal to issue a licence.
Have applicants a right of appeal in the event of refusal to issue a licence?
If so, to what bodies and under what procedures?
Importation
Are there any limitations as to the period of year during which importation may be made?
There are no limitations on the period of the year during which applications for a Gas Importer Licence and/or importation of natural gas may be made.
What documents are required upon actual importation?
Upon actual importation, gas importers are required to submit their gas contracts and monthly imported quantities to EMA.
Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
There are no other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation.
Conditions of licensing
What is the period of validity of a licence? Can the validity be extended? How?
A Gas Importer Licence is valid up to the expiry of all gas contracts entered into between the licensee and its suppliers and/or customers.
Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for the non-utilisation of licence or a portion of it.
Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Licences are not transferable without prior approval in writing from the relevant authority.
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
Not applicable.
Is a licence required as a condition to obtaining foreign exchange?
Not applicable.
Is foreign exchange always available to cover licences issued?
Not applicable.
What formalities must be fulfilled for obtaining the foreign exchange?
Not applicable.
The following questions are only for products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally)
Where is information on allocation and formalities for licences published? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Details are proved at https://www.ema.gov.sg/Licensees_Gas_Importer_LNG.aspx. While there is no restriction of the volume of LNG imported on a term basis (i.e. gas contracts with 1 year or longer duration), EMA imposes a 10% annual cap on the volume of spot LNG imported (i.e. gas contracts shorter than a year) based on long-term contracted gas quantities of more than 10 years – such information can be found on SLNG’s website at www.slng.com.sg.
Is the size of the quota determined: on yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for a fresh licence on a six-monthly or quarterly basis?
The number of LNG importers is decided at the start of each tranche of LNG import based on the domestic gas demand growth. Importers compete for the new licenses based on published criteria including pricing and reliability of supply, receiving exclusive rights to sell term supply of LNG for a fixed period. Thereafter, the importer can continue to sell term supply of LNG on a non-exclusive basis. As for PNG import, there is no pre-determined number of PNG importers as this depends on whether such importers can secure PNG from neighbouring countries. The tenure of each gas license is extended as and when there are new gas contracts.
Are licences allocated for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate)
Licences are not allotted for certain goods partly or only to domestic producers of like goods.
From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
EMA provides a reasonable period for the submission of applications for Gas Importer (LNG) Licences. For the previous tranches, EMA held a Request for Proposal (RFP) from 30 June 2014 to 30 June 2016. EMA is currently calling for a RFP from 9 July 2020 to 9 November 2020, and from 19 May 2022 to 25 July 2022. While there is no RFP for PNG importers as such importers can apply for a licence whenever they have secured PNG from neighbouring countries, EMA responds to such licence applications as soon as practicable.
What are the minimum and maximum lengths of time for processing applications?
The time taken for processing the licence applications falls within the 60 days period stipulated in Article 3.5(f) of the Agreement on Import Licensing Procedures.
How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
There are no limitations on the period of the year during which importation may be made.
Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Consideration of the Gas Importer (LNG) Licence application is effected by EMA. Applicants do not have to approach more than one administrative body.
If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
EMA calls for an RFP to allocate limited number of licences for each tranche of LNG import. As for PNG import, licences are given on a first come, first served basis.
In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Not applicable.
In cases where imports are allocated on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Not applicable.
Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Not applicable.