Singapore GasCo secures extra LNG cargoes, eyes term deals despite war volatility
- Focus on securing cargoes to offset supply cuts tied to war
- Singapore got 3 spot cargoes since war began
- Asia spot LNG prices up 54% since the end of February
Singapore's state gas buyer GasCo has secured additional cargoes of liquefied natural gas to offset supply shortfalls triggered by the U.S.-Israel war on Iran, and plans to seek long-term supply deals this year, despite market volatility.
The city-state, which relies on gas to generate 95% of its electricity has been importing increasing volumes of LNG, reaching 5.93 million tons last year, Kpler data shows, nearly half of it shipped from Qatar.
"While a portion of our LNG imports has been curtailed, Singapore GasCo has taken proactive steps to secure additional cargoes to augment existing supply sources," Chief Executive Alan Heng said in an emailed response. "In the short term, our focus is on securing LNG cargoes to make up for supply curtailed by existing suppliers."
TWO SPOT CARGOES FROM AUSTRALIA, ONE FROM MOZAMBIQUE. Kpler shiptracking data showed that Singapore received two spot cargoes from Australia and one from Mozambique since the war began on February 28.
One Australian cargo was delivered on March 27 from the APLNG project, and the other on April 9, from the Gorgon LNG project. The third spot cargo was delivered on April 19, after being loaded from the Coral South floating LNG project offshore Mozambique.
Singapore imported three LNG cargoes from Qatar in March last year, as part of full-year imports of 2.76 million tonnes from the Gulf supplier.
GasCo is unable to comment on specific commercial arrangements, it told media in reply to a request for comment on the spot cargo procurements and deliveries to Singapore.
STILL PLANS TO GO TO MARKET IN 2026 FOR LONG-TERM SUPPLIES. On its term-deal LNG procurement plans, GasCo still plans to go to the market in 2026 to seek long-term supplies, said Heng.
"At this time, the market has been disrupted and remains highly volatile," he added. "Engagements with credible, trusted suppliers are ongoing."
In November, Heng had said GasCo would seek offers in the first quarter of this year for delivery of term LNG supply from 2028.
Since the beginning of the war, Iran's blockage of the Strait of Hormuz, which handles 20% of global LNG flows, and damage to Qatar's liquefaction trains, boosted Asian LNG prices LNG-AS to three-year highs, before paring some gains.
They were last up 54% since end-February at $16.05 per million British thermal units (MMBtu).
ANALYSTS SLASH GLOBAL SUPPLY OUTLOOKS. Analysts have also slashed global supply outlooks, and expect high prices and the supply shortage to lead to demand destruction across Asia.
"The situation remains fluid, and we expect continued uncertainty and volatility in the market," said Heng.
The company aimed to work closely with regulators, gas suppliers, and power generation companies to safeguard the reliability of Singapore's energy supply, he added.
"We are actively managing and monitoring supply curtailments to Singapore and procuring additional LNG supply where necessary."
Related News
Related News
- Mitsubishi Heavy Industries Compressor acquires Swiss rotating equipment maintenance company AST Turbo AG
- Digital Exclusive: Evolving pressure relief valve designs protect LNG facilities
- Qatar’s Ras Laffan LNG hub hit by missile attack, ‘extensive damage’ reported
- JGC-Hyundai JV awarded EPC contract for major low-carbon LNG plant project in Papua New Guinea
- Iran attacks wipe out 17% of Qatar’s LNG capacity for up to five years
Comments