In order to boost competition and provide more options for gas buyers, Singapore wants to appoint two additional LNG term importers. It has been steadily increasing LNG imports and re-exports since the start of its first and only facility at Jurong Island, which was over seven years ago.
Singapore’s Energy Market Authority (EMA) said it expects natural gas to be the dominant fuel in the near future as the country shifts towards renewable energy. The country is already Asia’s largest oil trading hub, but is now also looking to become the leading LNG hub in the region. It has already lined up several new developments, including bunkering.
The energy regulator issued a request for a proposal so it can select and appoint two new LNG importers who will get a licence. This is in addition to the current term importers Pavilion Energy Singapore and Shell Eastern Trading, who both received licences in 2017.
EMA said it would evaluate proposals based on their ability to provide “reliable, secure and competitive supply of LNG to Singapore.” It said interested parties must submit proposals by 9 November, 2020.
The new importers will enter into a terminal use agreement with Singapore LNG. EMA said the importer’s primary function must be to provide regasified LNG supply to fulfil Singapore’s domestic demand, but the importer may also conduct other activities such as selling short-term/spot regasified LNG and selling volumes for bunkering or re-export.
Other activities also include providing handling services to parties who wish to bring in their own upstream LNG supply or share cargoes for unloading at the terminal – and providing gas shipping services to end-users.
For more information visit www.ema.gov.sg