Singapore’s Energy Market Authority (EMA) has awarded ExxonMobil and Sembcorp Fuels the right to import liquefied natural gas (LNG) as pipeline supplies dwindle.
The EMA hands out term LNG import licenses to ensure that the supply of regasified LNG to gas users in Singapore on a term basis is competitive and reliable. There are currently two term LNG importers in Singapore – Pavilion Energy and Shell.
Singapore plans to import more LNG as contracts for gas shipped via pipelines from neighbouring Indonesia and Malaysia are due to expire.
The city state, home to 5.7 million people, aims to position itself as an LNG trading centre for Asia as it seeks to capitalise on an expected rise in LNG imports in the region, driven by waning gas production and expanding electricity demand.
“Natural gas is one of the four switches in Singapore’s drive towards a more reliable, affordable and cleaner energy future. It is the cleanest form of fossil fuel and is expected to be the dominant fuel for Singapore in the near future as we scale up our renewable energy options,” the EMA said in a statement yesterday announcing the new import licenses.
The four switches are natural gas, solar energy, regional power grids and emerging low-carbon alternatives. Solar is the most promising renewable energy for Singapore. The Southeast Asian nation is working towards a solar target of 1.5 GW peak by 2025, and at least 2 GW peak by 2030.