Pavilion Gas and Shell Eastern Petroleum win Singapore LNG import licences
The Energy Market Authority (EMA) has awarded licences to Pavilion Gas and Shell Eastern Petroleum to import the next tranche of liquefied natural gas (LNG) for Singapore.
The two companies were selected through a two-stage request for proposal (RFP) process to appoint up to two LNG importers for the supply of LNG within the country.
Pavilion Gas and Shell have been selected as they offered flexible and competitively priced LNG supplies to Singapore, and demonstrated an ability to cater to various market needs.
During the second stage of the RFP, the companies secured the most demand from different buyers.
Both companies will now be able to exclusively market up to one million metric tonnes of LNG per year over a period of three years for the next tranche.
The next tranche of imports is expected to begin next year and the EMA has requested interested gas buyers to approach the appointed importers on their gas supply terms.
Minister for Trade and Industry S Iswaran was quoted by Bloomberg as saying that Singapore will also consider spot purchases of the supercooled fuel, as well as piped natural gas on a case-by-case basis.
BG Group was acquired by Shell in February this year and has recently secured a contract to supply LNG to Singapore.
Under the deal, the company was required to supply three million tonnes of LNG per year to Singapore for a period of ten years, beginning in 2013 and ending in 2023.
EMA data revealed that natural gas accounted for 95.3% of Singapore's fuel mix for electricity generation last year.