Singapore is expected to select up to two new suppliers to import LNG, as the city-state has expanded the capacity of its LNG storage and import terminal. In May 2013, state-run Singapore LNG Corporation commenced operations of the country’s first LNG terminal with an initial capacity of 3.5 mtpa. The terminal’s capacity is expected to be raised to 6 million tonnes (mt) by the end of 2013 and to 9 mt by 2016. At present, a BG Group subsidiary, BG Singapore Gas Marketing Private Limited, holds 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 the moratorium on new piped natural gas imports soon. In order to meet the LNG demand, the government has prohibited the country’s four pipeline gas importers from signing new contracts until 2018, or till such time that the demand for LNG, shipped in by the BG Group, reaches 3 mtpa, whichever is earlier.
