Singapore: To appoint next LNG importer via competitive process
BY ERIC YEP
SINGAPORE -- Singapore plans to award its next liquefied natural gas import license through a competitive process and intends to adopt a flexible framework to take advantage of market developments and competitive prices, its regulator said in a consultation paper dated Monday.
The city-state won't restrict the number of importers to one or appoint them "concurrently" before gas markets mature, the Energy Market Authority said.
State-run Singapore LNG Corp. started commercial operations at the country's first LNG terminal last month with the objective of diversifying gas imports and creating a regional gas trading hub.
The EMA has already awarded BG Singapore Gas Marketing Pte. Ltd a contract for the supply of 3 million metric tons of LNG, of which 2.7 MMmt have found buyers in Singapore. BG Singapore is a unit of BG Group.
Another importer for the next round of supply will be appointed through competitive bids, after which more importers may be appointed depending on demand and market developments.
The EMA is seeking feedback on the selection criteria by July 31, after which it will begin accepting proposals.
"The global gas market is also expected to evolve, with the emergence of new supplies and new forms of contracts. EMA will monitor these developments and trends and regularly evaluate if the proposed LNG import framework remains most optimal to meet Singapore's longer-term needs," the EMA said.
Singapore's annual gas demand will likely remain small at around 1 to 1.5 MMmt up to 2018, the regulator said, adding that it is expected to grow rapidly after 2020 as pipeline contracts expire and power demand increases.
The LNG terminal can accommodate four importers when it reaches full capacity, it said.
Dow Jones Newswires