The Energy Market Authority has shortlisted four companies to participate in stage two of its request-for-proposal to import the next tranche of liquefied natural gas into Singapore.
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 the country to keep its options open to take advantage of opportunities arising from changing global market conditions, the authority informed in a statement.
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 closed on 31 December 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 BG Singapore Gas Marketing, Pavilion Gas, Sembcorp Industries and Shell Eastern Petroleum.
Stage two will take place from 29 May 2015 to 29 February 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 February 29, 2016, for evaluation.
EMA said it 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 licence issuance, or when they have sold 1 Mtpa of LNG, whichever is earlier.