PUBLIC UTILITIES BOARD

The Public Utilities Board will expand its facilities to meet the demand for electricity and water. It will spend about $2,200 million on development projects over the next five years.

Electricity

Singapore relies totally on imported oil to meet its energy requirements. Electricity demand is expected to increase by 10% annually. $596 million were spent on fuel oil to generate electricity in 1980. The expenditure will go up to over $900 million in 1981, partly because of increased electricity consumption, but mainly because of higher cost of fuel oil. The Board plans to remove the promotional block rates of non-domestic electricity tariffs to discourage wastage and inefficient use of electricity.

The uncertainty of oil supply is a serious problem. Power Stations will be modified so that they can use different types and grades of fuel oil. The feasibility of a coal power station will be studied.

The Board will construct two new power projects - a 80 MW gas turbine at Pasir Panjang Power Station to augment power supply during peak hours and emergencies and a new power station on Pulau Seraya. The gas turbine will operate from 1982 and the first stage of 700 MW for the Pulau Seraya Power Station from 1987.

Water

Water consumption is increasing at too fast a rate. If not checked, there will be a shortage of water in the future. Water tariffs may have to be revised to discourage excessive use of this scarce resource.

Two reservoirs at Sungei Seletar and Bedok will be built.

Gas

The Gas Department will not be building new gas works in the next few years because of difficulty in getting a suitable site. In HDB estates with gas supply, only a third of households use it; the majority use bottled gas. Naphtha is the main feedstock for gas production. It will become more expensive as it is derived from crude oil and is also the feedstock for petrochemical plants. These factors, including the high cost of laying new pipeline reticulations, will make the production and distribution of gas less economic in the future.

The Board, however, is replacing five obsolete units of gas-making plants at Kallang Gasworks with a pollution-free naphtha reformer. This new gas-making plant will increase the capacity of Kallang Gasworks to meet modest increase in demand for piped gas over the next few years. It will be completed by end 1981.

GOH CHOK TONG Minister for Trade and Industry