ANNEXURE 8

SYSTEM STRESS PROCEDURES

1 OBJECTIVE

2 DEFINITION OF SYSTEM STRESS

3 NOTIFICATION PROCEDURE

3.1 Notification Protocol

3.2 Emergency Contact Details

4 PRE-EMPTION PROCEDURE

5 RESPONSE PROCEDURE

5.1 Response Measures

5.2 Implementation of Response Direction

6 RESTORATION OF TRANSPORTATION SYSTEM

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1 Objective

The System Stress Procedures contained in this document have been developed and issued by
the Transporter pursuant to Section M of the Network Code and approved by the Energy Market
Authority (EMA).

This document sets out the procedures to be followed and actions to be taken by the
Transporter, Shippers and their customers to maintain or re-establish the secure and safe
operation of the Transportation System in the event of impending or during System Stress.

In Singapore the Transportation System is a national network of pipes owned and operated by
the Transporter and used for transporting gas to customers. The Transportation System has
limited linepack and there are minimal gas storage facilities available to the Transporter. All
natural gas in Singapore is produced offshore and is imported to Singapore through submarine
pipelines (from Malaysia and Indonesia).

In order to maintain the required pressures in the Transportation System and to ensure that there
is sufficient gas in the Transportation System to meet the demand, the users of the Transportation
System are reliant upon the performance of the production facilities. The purpose of this
document is, therefore, to address the situation where either there are insufficient supplies to the
Transportation System from the upstream producers or there is a critical transportation constraint
at some point on the gas supply chain which will, in the Transporter’s opinion, constitute a
System Stress situation.

Capitalised terms defined in the Network Code shall have the meanings ascribed thereto when
used in this document.

2 Definition of System Stress

The existence of System Stress shall be determined by the Transporter in its sole judgement and
irrespective of either its cause or whether or not the Transporter or any other person may have
contributed to the System Stress.

The Transportation System shall be in a state of System Stress when any of the following
conditions exist:

(a) the safe and reliable conveyance of gas in the Transportation System is at risk;

(b) the maintenance of safe and reliable pressures in the Transportation System is at risk;

(c) the existence of such other circumstances affecting the Transportation System that
constitutes or is likely to constitute a gas emergency; or

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 (d) where the Transporter has been advised by the Power System Operator that an interacting
system stress condition may occur on the electricity network.

The circumstances which may cause the Transportation System to enter into a state of System
Stress include, but are not limited to, the following:

(a) the amount of gas injected into the Transportation System is not able to meet demand
which results in excessive Imbalances;

(b) system pressures fall outside the Prescribed Security Limits;

(c) gas quality characteristics are outside specification at Transmission Network Injection
Points resulting in the rejection of such gas at such Transmission Network Injection Point;

(d) Force Majeure;

(e) damage to the Transportation System;

(f) damage to a receiving terminal; or

(g) malfunction or operation of equipment in a receiving terminal or another critical

installation that has substantial impact on gas flow.

System pressures are the key determinants of the security of the Transportation System. The
Transportation System shall be deemed to have entered into a state of System Stress when the
Prescribed Security Limits are breached. The term “Prescribed Security Limits” shall mean the
limits of the operating pressure range of key Transportation System elements which may be
prescribed and published by the Transporter from time to time.

3 Notification Procedure

3.1 Notification Protocol

Responsible Action Communication

Party

Shipper Notify the Transporter as soon as practicable By telephone and

after becoming aware of any event or facsimile
situation of the kind described in paragraph 2
including any action taken by the Shipper or
its customers under their own safety,
emergency or response procedure.

Shipper Liaise closely with the Transporter in By telephone and

complying with and executing the facsimile
Transporter’s directions during System Stress.

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 Transporter Notify Shippers, EMA, the Power System By telephone and
Operator of the EMA (PSO) and any Upstream GTSS system
Facility Operator (UFO) upon the declaration
of System Stress and issue of System Stress
Notice.

Transporter Notify Shippers to execute System Stress By telephone and

directions or instructions given by the facsimile
Transporter in order to restore the
Transportation System.

Transporter Notify Shippers to execute System Stress By telephone and

Curtailment Plan. facsimile

Transporter Notify EMA and the PSO on implementation By telephone

of the System Stress Curtailment Plan.

Transporter Notify Shippers, the EMA, the PSO and the By telephone and
UFO of the Code Re-start Time GTSS system

3.2 Emergency Contact Details

Shippers and any UFO shall provide the Transporter with:

(a) An emergency telephone number and facsimile at which a representative of the Shipper
or any UFO is contactable by the Transporter, 24 hours a day; and

(b) The name and title of the Shipper’s or any UFO’s representative who shall be a person
having appropriate authority to act on behalf of the Shipper or, as the case may be, any
UFO.

The System Control Centre of the Transporter will be the centre that communicates and liaises
with the relevant parties. Contact numbers of the System Control Centre shall be made available
to all relevant parties.

Shippers shall notify the Transporter of a change to the contact details and where possible in
advance and vice versa.

4 Pre-emption Procedure

Pre-emption measures are vital in maintaining the secure and safe operation of the
Transportation System.

Shippers and its major customers who operate power generating plants are equipped with the
essential systems to monitor, control and manage their facilities which include gas receiving
terminals, metering stations and power generation plants. Gas supply pressure and status of
Emergency Shut Down Valve (ESDV) at the facilities are closely or real-time monitored by the
Shipper and its major customers.

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 In addition, the Transporter real-time monitors the gas pressure that enters into its Transportation
System and the status of ESDV at the Transmission Network Injection Points and, in the event it
notices any abnormal pressure readings, will notify the Shippers accordingly.

These monitoring activities or notifications provide early warnings to the Shipper and its major
customers who can take pre-emption measures (as described in the PSO’s Standard Operating
Procedure for Natural Gas Supply Disruption) to respond to a significant reduction in gas supply
pressure which may be caused by a fault at the gas receiving terminal or at the production
facilities. The pre-emption measures must be taken swiftly to minimise impact on the power
system as the loss of adequate gas supply pressure to the power generating plants could occur
within minutes.

In a situation where a gas supplier notifies the Shipper or the Shipper becomes aware of any
reduction or curtailment of gas supply, the Shipper must take swift pre-emption measures such
as implementation of the Shipper’s allocation plan and procedures to effectively manage its
reduced gas supply to avoid or reduce any significant gas imbalance or impact on the
Transportation System.

These pre-emption measures will significantly reduce or eliminate the risk of the Transportation
System from entering into System Stress since a high proportion of gas supply in Singapore is
utilised for power generation.

The Shipper shall notify the Transporter of any measures taken by the Shipper and its major
customers.

5 Response Procedure

5.1 Response Measures

The Transporter shall notify each Shipper, the EMA and the PSO of any declaration of System
Stress when the Transportation System enters into a state of System Stress. A System Stress
Notice shall be issued to each Shipper in accordance with Section M of the Network Code.

During a declared state of System Stress, the Transporter may issue instructions or directions as it
reasonably considers necessary to address the System Stress and restore the Transportation
System to a normal operating state. Directions which may be issued by the Transporter include,
but are not limited to, the following:

(a) increase or decrease the quantity of gas to be injected into the Transportation System;

(b) increase or decrease the quantity of gas to be offtaken from the Transportation System; or

(c) Implementation of the System Stress Curtailment Plan.

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 The strategy employed to restore the Transportation System to a normal operating state will be
dependent on the circumstances that gave rise to the System Stress. In circumstances such as
Force Majeure or serious damage to the Transportation System, the Transporter may be required
to take action such as isolation of a damaged section of its Transportation System so as to
contain the situation.

5.2 Implementation of Response Direction

Upon receipt of a System Stress Notice, each Shipper shall advise all relevant officers and, where
relevant, its customers, of the existence of the state of System Stress. A Shipper may execute its
own safety, emergency or response procedures if it deems necessary.

During a declared state of System Stress, each Shipper shall:

(a) to the extent within the Shipper’s power, comply with the Transporter’ instructions or
directions that may include, but are not limited to, the following:

(1) inject gas into the Transportation System in such quantities and such rates as the
Transporter may specify;

(2) offtake gas from the Transportation System in such quantities and such rates as the
Transporter may specify; or

(b) execute the System Stress Curtailment Plan; or

(c) co-operate with the Transporter to enable the Transporter to implement its System Stress
response procedures.

6 Restoration of Transportation System

When the circumstances that caused the System Stress have ceased and upon restoration of the
Transportation System to normal operation, the Transporter shall notify each Shipper, the EMA,
the UFO and the PSO of the cessation of System Stress. The Transporter shall issue a Code Re-
start Notice to each Shipper which shall specify the Code Re-start Time.

The Transporter shall issue instructions to relevant Shippers in the restoration process. If the
System Stress Curtailment Plan is implemented during System Stress, then the order of restoration
of supply shall be as described in such plan.

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