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Pavilion Gas and Shell Trading now able to bring in LNG cargoes with award of licence

PAVILION Gas and Shell Trading have received licences from the Energy Market Authority to bring in their liquefied natural gas (LNG) cargoes into Singapore.

Both companies, which won the right to import Singapore's second tranche of LNG last year, were issued the licence on Oct 23, Senior Minister of State for Trade and Industry Koh Poh Koon said on Wednesday.

"This also marks the conclusion of the first exclusive franchise that was awarded to BG, now Shell," he said at the Gas Asia Summit on the third day of the Singapore International Energy Week.

With the end of the first franchise, the government has also lifted the moratorium on piped natural gas imports to encourage greater competition among gas suppliers, he added.

From the first quarter of next year, imports of spot LNG will also be allowed. This is subject to a market-wide cap of 10 per cent of Singapore's long-term contracted gas supplies, out of which 3 per cent will be based on the Singapore LNG Index Group (Sling) prices.

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This will further increase dynamism in Singapore's gas market, Dr Koh said.

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