Singapore will next month begin a second round of discussions with industry players before deciding on guidelines for importing additional liquefied natural gas into the country, its trade minister has said.
The city-state’s energy regulator had conducted the first round of industry consultations last year and market participants have been waiting for a decision on how more LNG would be imported into the country.
“Ultimately, our aim is to ensure that end users of gas in Singapore will have more options and flexibility in securing stable, secure and competitively priced gas to meet their needs,” Mr S. Iswaran, Second Minister for Home Affairs and Trade & Industry, said at a conference.
He said Singapore’s first LNG terminal is on track to commence operations this quarter with an initial capacity of three million tons, which will be expanded to nine million tons in two to three years for LNG trading, redistribution and bunkering.
“It is too early to talk about further expansion,” Mr. Iswaran said on the sidelines.
The Singapore government had contracted BG Group PLC (BG.LN) to supply the initial three million tons of LNG, of which 90% has now found buyers among the country’s power generation companies and industries.
Mr. Iswaran said Singapore will add 2,000 megawatts of gas-based electricity generation capacity in the next two years alone, adding that the new LNG import framework is vital as gas demand may rise to as much as 15 million tonnes a year by 2024.
The bulk of Singapore’s electricity is gas-based and it is building its first LNG import and storage terminal in a bid to diversify its gas sources and develop a trading hub for LNG.