PUBLIC UTILITIES BOARD (Termination of gas supply to older private housing estates)

Mr Goh Choon Kang asked the Minister for Trade and Industry why the Public Utilities Board has decided to terminate the gas supply to older private housing estates and how many estates are affected.

Mr Goh Chee Wee (for the Minister for Trade and Industry): Mr Speaker, Sir, the Public Utilities Board (PUB) will be terminating piped gas supply to 40 low-rise estates affecting 15,970 households over the next two to three years.

Gas pipes in these estates were laid between 22 and 40 years ago. Over the years, house owners have built extensions in their backyards over the run of these gas pipes, thereby rendering maintenance of gas pipes difficult, if not impossible. These gas pipes could be corroded and the risk of gas leak would increase as the pipes get older. The leakage of gas could accumulate in the voids beneath the house extension and accumulate into an explosive mixture. Hence, for safety reasons, these pipes have to be replaced.

However, the cost of re-laying new pipes is very high and is not economically viable in view of the small number of households which use PUB piped gas in these estates. Although all housing units in the 40 affected estates are served by the PUB gas network, only 46% of them use PUB gas. It would not be justifiable for PUB to expend large sums of public fund when the majority of residents are not using PUB gas but bottled LPG.

Those households using PUB gas now would not be unduly inconvenienced as they can switch to LPG which is readily available and competitively priced. However, if the affected households wish to continue with PUB gas supply, they could collectively, within each estate, make a capital contribution towards part of the cost of laying the new gas pipes in order to make the gas mains renewal project financially viable. Additionally, each household would have to bear the cost of laying a new gas service pipe within his premises. It is estimated that each household would have to pay between $2,000 and $17,000 depending on the location and number of households in the estate. The average cost is $4,000 per household.

To-date, PUB has served notice to seven estates but has yet to terminate supply to any. The Members of Parliament of these seven estates have been informed of the intention and the rationale behind this exercise. Some households have already applied to cut off gas supply following the notification.

I would like to assure Members that PUB will continue to render all possible assistance to affected households and will carry out the exercise in a manner which will cause least inconvenience to them.

Mr Goh Choon Kang (Braddell Heights): Sir, what is the total cost of re-laying the gas pipes in all these estates?

Mr Goh Chee Wee: It depends on the housing estate concerned. The figures I quoted, ie, between $2,000 and $17,000, are the contribution to be made by the households. The cost actually depends on the estate concerned, ie, the condition of the pipes, the pipelines, the layout, etc.

Mr Goh Choon Kang: Would the Government consider doing this as an upgrading project for the private housing estates?

Mr Goh Chee Wee: I have already explained the rationale why, from PUB's analysis, it is not economically viable to re-lay the pipes. But if the residents insist that they want the PUB gas supply and they are prepared to bear part of the cost, PUB will oblige.

Mr Goh Choon Kang: My question is whether the Government is prepared to do this as an upgrading project, just like the Government is upgrading the HDB estates.

Mr Goh Chee Wee: Even if the residents pay the cost which I have mentioned, they only bear part of the cost of laying the pipes.

Mr Goh Choon Kang: Compared to the total cost, what is the percentage?

Mr Goh Chee Wee: As I mentioned, it depends on the estate. In this case, I also want to mention that the residents have an alternative. They can always switch to LPG gas which is available at more or less the same price as PUB gas.

Mr Goh Choon Kang: Can we work on a similar formula for upgrading of HDB estates?

Mr Goh Chee Wee: If the Member wishes to put up a proposal as to the percentage of cost that the residents are prepared to bear, I think we are prepared to consider.

Mr Goh Choon Kang: Can the Minister of State convey this proposal to the Cabinet?

Mr Goh Chee Wee: As I said, the figures I quoted have been worked out by the PUB and it is part of the total cost of laying the pipes. If the Member feels that the PUB should contribute more, we would be pleased to hear suggestions from the Member.