Switzerland-based MET Group, an integrated European energy company, has firmed up a heads of agreement (HoA) with Infrastructure Division of Singapore-headquartered Keppel, an asset manager and operator, together with a licensed liquefied natural gas (LNG) importer, for the supply of LNG, enhancing the security of energy supply in Singapore.
The finalization of the heads of agreement, which enables the long-term LNG cargo deliveries of 0.5 million tonnes per annum (mtpa), is perceived to deepen the partnership between MET and Keppel, who has 10% shareholding in the Swiss player.
The LNG is expected to be supplied from MET’s European import portfolio. The LNG supply is conditional upon the signing of a sales and purchase agreement (SPA) and fulfilment of conditions precedent, including regulatory approval.
The Switzerland-headquartered firm has been active in spot and mid-term deliveries in the Pacific basin, with this HoA being the first long-term contract for the company in the Pacific.
The deal is said to secure the coverage of the expected increase in Keppel’s gas demand over the next years, whilst fitting with MET Group’s strategy of expanding its global LNG footprint.
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The Swiss player highlighted: “The agreement further strengthens the partnership and synergies between Keppel and MET, aiming to expand and capture gas value chain opportunities in Singapore – and exploring opportunities beyond Singapore, benefiting from the rise of energy and power demand in Asia.
“LNG is a key element in ensuring supply security of energy markets, and MET Group is committed to growing LNG deliveries. In recent years, MET has built one of the most geographically diverse LNG import structures in Europe, with long-term regasification capacity bookings in Germany, Croatia and Spain.”
The firm has imported LNG cargoes to several countries across the Mediterranean, including Greece, Italy, Croatia, and Spain; Northwest Europe, such as the UK, Belgium, the Netherlands, and Germany; and the Nordic region, which entails Finland.
MET entered into a ten-year LNG agreement with Shell last year to buy U.S. LNG with the intent to continue growing its long-term LNG portfolio. In addition, the company ordered its first LNG carrier , for delivery in 2027, after reaching a partnership agreement with Celsius Group, a Danish shipowner.