SINGAPORE GOVERNMENT PRESS RELEASE

Media Division, Ministry of Information and The Arts,

36th Storey, PSA Building, 460 Alexandra Road

Singapore 119963

Tel: (065) 375-7794 / 375-7795

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SPEECH BY MR LEE YOCK SUAN, MINISTER FOR TRADE & INDUSTRY AND SECOND MINISTER FOR FINANCE AT THE OFFICIAL OPENING OF THE SENOKO GASWORKS ON FRI 7 MARCH 1997 AT 10.30 AM AT 26 SENOKO AVENUE

Distinguished guests,

Ladies and gentlemen.

I am happy to be here this morning for the opening of the Senoko Gasworks. The start-up of this new and modern facility marks a new chapter in the history of the piped gas industry in Singapore.

The history dates back to 1861 when piped gas was produced in Kallang Gasworks from coal primarily for street lighting. Replicas of such street lamps can be seen at Clarke Quay as a reminder of our heritage. The Kallang Gasworks switched to heavy fuel oil as feedstock in 1958 and then to naphtha in 1966. Use of piped gas has since been widely extended to domestic and commercial premises all over Singapore.

Until recently, the production activities were concentrated at the Kallang Basin where the Gasworks still stands as a landmark of the area. But this will soon change. In line with the long term plans for the Kallang Basin, the Gasworks will make way for residential, recreational and commercial developments which will further improve the quality of life for Singaporeans.

Demand for piped gas has been increasing rapidly, at an average of some 6% per annum over the last five years. The number of customers PowerGas now serves exceeds 340,000. The daily peak demand for gas has crossed the 700,000 cubic metres mark, compared to 450,000 cubic metres in 1990.

To satisfy the increased demand, PowerGas has done more than just build a new plant with a larger capacity. It has introduced several initiatives to improve customer service and reach out to more customers. It has appointed more than 40 GasDirect outlets across the island for better consumer access. Today, 8 out of 10 new HDB flat owners opt to use piped gas as an integral part of modern living.

PowerGas' efforts in improving customer service have shown results, judging from the high ratings it receives from customers. In a recent market survey, over 90% of customers were satisfied with the level of service provided by PowerGas.

The positive feedback signals that PowerGas is moving in the right direction. This should spur the company to work even harder and smarter. As a key player in a competitive market, PowerGas has to constantly strive to minimise cost and improve its efficiency. It must also provide a reliable and good service at an affordable price so as to retain its existing customers and gain more new ones in the face of keen competition from LPG supplied by the refineries.

The Senoko Gasworks project has been completed within a tight schedule of 2 years 9 months from the date of award of the contract. I congratulate PowerGas for the completion of this milestone project and for its efforts to further develop the piped gas industry in Singapore. PowerGas is playing an important role to enable more Singaporeans to enjoy a quality lifestyle with the convenience and reliability of piped gas in their homes.

It is now my pleasure to declare the new Senoko Gasworks open and to wish PowerGas every success in its efforts to grow as a thriving corporate entity.