Singapore’s Energy Market Authority (EMA) is seeking up to two new LNG term importers and has issued a request for proposal (RFP).
The exclusive franchise of the two existing suppliers, Pavilion Energy Singapore and Shell Eastern Trading, will expire at the latest in April 2021, or when they have secured term supply of 1 million TPA of regasified LNG, whichever is sooner. Both companies were appointed in 2017 through a previous RFP process.
New proposals must be submitted by 15:00 SGT on 9 November 2020, and the EMA will evaluate each proposal based on a company’s ability to ‘provide reliable, secure and competitive supply of LNG to Singapore.’ The RFP document, which sets out the selection criteria, makes it clear that it is not a tender for supply or sales and that the successful importer is responsible for agreeing contracts with buyers. Successful importers’ primary function will be supplying regasified LNG to fulfil domestic demand, but they may also engage in other activities such as selling short-term/spot regasified LNG, selling LNG volumes for bunkering or re-export, or providing handling services. Potential importers must be incorporated in Singapore.
The EMA says that the enhanced competition from more LNG term importers will improve options for gas buyers. Natural gas is expected to be the dominant fuel in Singapore as it transitions to more renewable energy options so more will be required.