Regional LNG: Firms shortlisted to join bid in Singapore LNG import

By Romel S. gurky

Singapore?s Energy Market Authority (EMA) has shortlisted four companies to participate in Stage Two of its Request-for-Proposal (RFP) to import the next tranche of Liquefied Natural Gas (LNG) into island country.

In February 2014, EMA introduced a Competitive Licensing Framework to provide Singapore with the flexibility to procure LNG on a tranche-by-tranche basis, to meet incremental market demand. ?This approach allows us to keep our options open to take advantage of opportunities arising from changing global market conditions,? EMA said in a statement Saturday.

In June 2014, EMA launched Stage One of a two-stage RFP process to appoint up to two importers to meet the next tranche of Singapore?s LNG demand. Stage One was closed on December 31, 2014 and saw nine bids from 10 companies. As the bids received were very competitive and demonstrated a high level of quality in both price and non-price terms, EMA has shortlisted four companies to participate in Stage Two, instead of up to three companies as originally envisaged. The shortlisted companies are (in alphabetical order):
? BG Singapore Gas Marketing Pte. Ltd.
? Pavilion Gas Pte. Ltd.
? Sembcorp Industries
? Shell Eastern Petroleum (Pte) Ltd

Stage Two will take place from May 29, 2015 to February 29, 2016. ?During this period, the four shortlisted companies will negotiate and enter into binding commitments with potential LNG buyers, and submit their proposals to EMA by 11.00am (Singapore time) on February 29, 2016 for evaluation,? EMA said.

EMA will appoint up to two companies to import LNG for Singapore. The appointed importer(s) will each be awarded an exclusive franchise to import and sell LNG in Singapore. This franchise will be valid for three years from the date of license issuance, or when they have sold 1 Mtpa of LNG, whichever is earlier.

EMA is a statutory board under the Ministry of Trade and Industry. Its main goals are to ensure a reliable and secure energy supply, promote effective competition in the energy market and develop a dynamic energy sector in Singapore.

Editing by Reiner Simanjuntak