Regional LNG: Consultants shortlisted for Singapore LNG study

The Energy Market Authority (EMA) has shortlisted 'a handful' of consultants from the 26 groups vying to carry out a feasibility study on the use of liquefied natural gas (LNG) for power needs, Singapore's Business times reported.

Details of those who made the first cut are expected in a couple of days, with appointment of the consultant likely next month if EMA keeps to its earlier timetable.

Industry sources say the next step is likely to be an in-depth review of the shortlisted tenders by the authority, including further clarification of documents.

An EMA spokesman confirmed yesterday that a shortlist had been drawn up and said more details would be released later this week.

Response to the tender - which was called in July and closed on Aug 27 - was overwhelming. A shortlist had been expected last month, but whittling the bidders down took longer than expected because there were so many of them. An international field included interests from Japan, the United States, Europe and Singapore, from a range of industry segments such as oil and gas companies, and construction to LNG users and consultants.

They included top names like Shell, Osaka Gas, Tokyo Electric, Foster Wheeler, Conoco and Kellogg Brown & Root - to name just a few.

The appointed consultant will study all aspects of the LNG issue - from sourcing to commercial and technical viability.

'It includes where to buy the LNG, when to buy, should it be on a spot or term basis, where to locate an LNG terminal, environmental factors and others,' Facts Inc senior consultant Hassan Vahidy earlier told BT. Such a wide-ranging study would take about a year to complete, he said.

Singapore is eyeing LNG to help diversify its energy sources. LNG can be shipped in from any location worldwide, supplementing natural gas currently piped to power stations here from Malaysia and Indonesia.

But decisions will have to be made soon, as it takes 6-7 years to get an LNG project going.(*)