Singapore’s gas customers will be allowed to import up to 10 percent of their annual long-term quantity from the spot market, according to the country’s trade and industry minister, S. Iswaran.
The minister revealed in his speech at an LNG event on Tuesday in Singapore that the Energy Market Authority “will allow interested parties to import spot LNG cargoes for domestic use after the conclusion of BG’s exclusive franchise.”
Under the spot LNG import policy, gas buyers would be given annual credits to import up to 10 percent of the total long-term contracted quantities in the form of spot cargoes, Iswaran said.
He added that Singapore is is the second stage of the post-3 mtpa request for proposal process.
Currently, BG Group that was recently acquired by Shell is the exclusive gas aggregator for the first 3 mtpa of LNG.
Three companies have been shortlisted for the second tranche of LNG supplies. Two companies out of Pavilion Gas, Sembcorp Industries and Shell will become Singapore’s next LNG importers.
Singapore’s Secondary Gas Trading Market (SGTM) will additionally allow gas users to on-sell excess gas which would lead to price discovery and move the country to its goal of becoming a regional hub, Iswaran added.
Furthermore, he noted that Singapore’s LNG trading sector has been going through a period of growth with more than 30 LNG companies present in the country.
The government is also engaged in developing the gas trading hub through the enhancement of the LNG infrastructure for energy security and to support a wide spectrum of ancillary LNG activities.
LNG World News Staff