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Singapore awards new LNG import licences to Pavilion Gas and Shell Eastern Petroleum




By Ann Williams

SINGAPORE – Pavilion Gas and Shell Eastern Petroleum have won exclusive contracts to supply Singapore with its next tranche of liquefied natural gas (LNG), beating out Sembcorp Industries and BG Singapore Gas Marketing.

“These two companies were selected on the basis of the reliability, flexibility and competitive-pricing of their LNG supplies,” said Mr S. Iswaran, Minister for Trade and Industry (Industry). “They have also secured strong support from buyers.”

He was speaking on Monday (Oct 24) at the opening of Singapore’s International Energy Week (SIEW) at Marina Bay Sands.

Pavilion Gas and Shell will each have the exclusive right to supply LNG to Singapore for three years, or when their imports reach one million tonnes per annum (mtpa), whichever is earlier.

This will meet demand beyond Singapore’s initial three mtpa franchise and further complement other piped sources of natural gas, said Mr Iswaran.

The minister said Singapore’s gas consumers will benefit from the new and improved terms offered by the two companies. For example, buyers have been offered shorter term contracts and alternate price indices, such as the Henry Hub and SGX’s LNG Index Group.

Beyond this next tranche of LNG imports, which is expected to commence in 2017, the Energy Market Authority also plans to allow third party spot imports and new piped natural gas imports on a case-by-case basis.

“This will further augment the diversity of gas supply sources in Singapore, and encourage more gas-on-gas competition in the domestic market,” said Mr Iswaran.


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