The Energy Market Authority is looking into setting up a Secondary Gas Trading Market (SGTM) to facilitate the trading of gas in Singapore.

Natural gas comprises 95% of the fuel mix for electricity generation in Singapore. While this gas is currently supplied through long-term contracts, having a secondary gas market whereby stakeholders can buy or sell gas to meet their short-term requirements enables them to better optimise their gas portfolios.

In support of this initiative, which will benefit Singapore's power sector as a whole, EMC has launched the Gas Trading Board (GTB) as an interim platform to facilitate the bilateral trading of gas domestically. The GTB was designed in consultation with the local gas industry players, and learning points from the GTB can feed into the SGTM development process.

EMC is the wholesale market operator of the National Electricity Market of Singapore (NEMS), which is Asia's first liberalised electricity market.

EMC provides a transparent and competitive platform for wholesale electricity trading, and its key activities include calculating prices, scheduling generation, clearing and settling market transactions as well as supporting governance of the market.

On any business day, EMC performs trade-matching of gas up to the following business day. All accepted bids and offers are matched using a Uniform Price Auction. However, only parties that have signed bilateral agreements can be paired.

The 40-bar bids will first be matched to 40-bar offers, establishing a clearing price P*(40) to be used for the settlement of matched trades in the 40-bar order book. The 28-bar bids will then be matched with the 28-bar offers and unmatched 40-bar offers, establishing a different clearing price P*(28) for the settlement of matched trades in the 28-bar order book. EMC will also compute the Singapore Gas Price (SIGAP), which is the trade-volume weighted average of P*(28) and P*(40). SIGAP is meant to reflect the notional domestic gas price in the Singapore network, and will not be used for physical settlement purposes.