Singapore is expected to select up to two new suppliers for the import of LNG, as the city-state expands the capacity of its LNG storage and import terminal. In May 2013, state-run Singapore LNG Corporation commenced the operations of the country’s first LNG terminal with an initial capacity of 3.5 million tonnes per annum (mtpa). The terminal’s capacity is expected to rise to 6 million tonnes (mt) by end-2013 and 9 million tonnes by 2016. At present, a BG Group subsidiary, BG Singapore Gas Marketing Private Limited, has the contract to supply the initial 3 mt of LNG at the terminal. According to government officials, Singapore’s energy regulator, the Energy Market Authority (EMA), will conduct the selection process for new suppliers in two phases in 2014. In the first phase, three entities will be selected and eventually two licences may be awarded depending on market demand and the quality of the proposals. Meanwhile, the EMA also intends to end a moratorium on new piped natural gas (PNG) imports soon, in the face of Singapore’s huge LNG demand. In order to meet domestic LNG demand, the country has prevented its four pipeline gas importers from signing new contracts until 2018, or until such time that the demand for LNG, shipped in by the BG Group, reaches 3 mtpa, whichever occurs earlier.
