Singapore's Energy Market Authority (EMA) selected BG Group to supply up to 3 million metric tons per year of liquefied natural gas (LNG) to the Singaporean market for up to 20 years.
An agreement signed earlier this month says BG will act as the aggregator of LNG demand for Singaporean gas users. BG will be responsible for sourcing and supplying LNG from its portfolio of projects. Initial deliveries are expected to begin in 2012 to coincide with completion of an LNG import terminal on Jurong Island in Singapore. EMA had earlier designated PowerGas Ltd., a subsidiary of Singapore Power Ltd., to build, own and operate the facility.
BG claims a leading position in Atlantic Basin LNG, and it is the main supplier of LNG to the United States. It is also the leading exporter of Atlantic Basin LNG to Asia Pacific markets. BG has long-term purchase agreements in place with Equatorial Guinea LNG, Nigeria LNG, Egyptian LNG and Atlantic LNG in Trinidad and Tobago. It also supplies gas to Atlantic and Egyptian LNG as well as holding an equity stake in both facilities. BG recently formed an alliance with Queensland Gas Co. Ltd. to develop a 3-4 million metric ton/year liquefaction plant in eastern Australia.
"We have taken a significant step into the global LNG market and with the entry of BG, Singapore will gain greater access to competitive, reliable and secure gas supplies from different parts of the world," said S. Iswaran, Singapore senior minister of state for trade and industry.
Martin Houston, BG managing director, Americas and global LNG, said the Singapore deal is the first of its kind for the company in the Asia Pacific market.
In February the company said 2007 operating profits were up 48% in its global LNG business with supply positions secured to 2020 and beyond. The company has contracted supply volumes of 12.6 million metric tons/year through to 2020 and beyond and plans to extend its current supply position through additional contracted feedstock in Nigeria as well as potentially from other sources, including Australia, it said.
Earlier this month Qatargas, Shell and PetroChina struck a sales and purchase agreement for the long-term supply of LNG from Qatar to the Chinese market (see NGI, April 14).
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