PUBLIC UTILITIES BOARD (Alternative fuel for electricity generation)

Mr Ng Kah Ting asked the Minister for Trade and Industry, as the possibility of a disruption in oil supplies in the future cannot be ruled out despite the current depressed world oil prices, whether the Public Utilities Board has taken the necessary steps to diversify its energy resources for electricity generation.

BG Lee Hsien Loong (for the Minister for Trade and Industry): Mr Speaker, Sir, although oil prices have come off their peak, the Public Utilities Board has not relaxed its efforts to search for an alternative fuel for electricity generation. The various alternatives considered include nuclear energy, coal and natural gas.

Nuclear power plants are low in fuel costs but high in capital costs. Although nuclear energy is "clean" - nuclear plants do not emit products of combustion as do fossil fuel-burning plants - it presents many other problems. Firstly, nuclear reactors are only economical above a certain minimum size. Singapore is unlikely to consume this much electricity until after the year 2000. Then there are problems of safety and disposal of nuclear waste, which are particularly hazardous in densely populated Singapore.

In 1982, we conducted a study to look into the feasibility of building a coal-fi red power station on Pulau Tekong. Coal would be cheaper than oil. However, unlike oil and natural gas, coal is very difficult to handle and use. A large area is required for storage of coal and disposal of ash. Moreover, because of our size and dense population, the attendant environmental pollution will be undesirable. The PUB has not yet decided to proceed with the project.

Other alternatives such as natural gas are being looked into. As stated in the MTI Addendum to the President's Address, the PUB is negotiating with Petronas on the supply of natural gas from Malaysia. It is willing to buy natural gas on fair commercial terms, and will negotiate for a long term contract to ensure security of supply at prices competitive with fuel oil. Discussions are continuing, and are progressing satisfactorily.