Asia/Pacific News
LNG Bunker Players Shell and Pavilion Gas Appointed as Singapore LNG Term Importers
S Iswaran, Singapore's Minister for Trade and Industry, Monday at Singapore International Energy Week (SIEW) 2016 announced that Pavilion Energy Pte Ltd (Pavilion Gas) and Royal Dutch Shell Plc (Shell) have been appointed as term importers of liquefied natural gas (LNG) for Singapore, Platts reports.
"These two companies were selected on the basis of the reliability, flexibility and competitive pricing of their LNG supplies," said Iswaran, adding: "they have also secured strong support from buyers."
Awarded under a two-stage competitive request for proposal (RFP) process launched by the Energy Market Authority (EMA) in June 2014, the two companies will supply Singapore with 1 million metric tonnes (mt) of LNG each year for up to three years - whichever is reached earlier.
With the next phase of LNG imports expected to start in 2017, Singapore's gas consumers are reported to have been offered shorter-term contracts, as well as alternate price indices, including Henry Hub and SGX's LNG Index Group.
In order to encourage more diversity of gas supply sources and more gas-on-gas competition in Singapore's market, EMA says it plans to enable third party spot imports, as well as new piped natural gas imports on a case by case basis.
In March, Ship & Bunker reported that, in preparation for Singapore's commencement of LNG bunkering in 2017, local players were looking to trade LNG bunkers and were in talks with Keppel Offshore & Marine (Keppel) and Shell's BG Group (BG), and Pavilion Gas.
