The market for LNG in Singapore is projected to grow at a CAGR 10.39% during 2016-2025, due to the push from Singapore government towards adoption of cleaner energy sources, capacity addition of natural gas / LNG based power plants and emergence of Singapore as a regional trading hub for LNG in Asia-Pacific.
"Growing demand from power generation sector, favorable LNG prices and government initiatives to setup Singapore as LNG hub is expected to drive Singapore LNG market," says the report by TechSci Research.
Pavilion Energy, a wholly owned subsidiary of Pavilion Gas Pte Ltd. inked an agreement with BP in 2016, under which the British company would supply around 0.4 million tonnes per year of LNG for 20 years from 2019, thereby increasing the supply of LNG in the country.
South West region dominated Singapore LNG market in 2015, on the back of increasing use LNG for addressing power generation needs. The region constitutes the largest natural gas power generation plants, which also support the regional demand for LNG in the country.
Gazprom Marketing & Trading Co Ltd., Pavilion Gas Pte Ltd., are the major suppliers of LNG in Singapore. In 2016, Maritime and Port Authority of Singapore (MPA) allocated funds to Harley Marine for building two dual-fuelled conventional bunker tankers, which would support LNG bunkering facilities in the country.
Further, for the development of LNG bunkering plant, Harley Marine signed a MoU with Pavilion Energy, Mitsui OSK Lines and Mitsui & Co.
“On the back of its strategic geographical location, Government of Singapore is planning to establish the country as trading hub for LNG in Asia-Pacific, so that it can serve all major demand centres for LNG in the region such as China, India and Thailand. Moreover, rising demand for natural gas from key end user has widened the demand-supply gap for LNG in Singapore,” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
He added: "In 2013, Singapore imported 0.94 MMT of LNG and registered a capacity utilization rate of only 35%. The market for LNG supply in the country is anticipated to increase with capacity additions through installation of floating storage regasification unit, implementation of favourable government policies and low LNG prices. Moreover, easy availability of LNG from Australia
, Qatar, Equatorial Guinea and the US, etc., and growing need for environment-friendly fuels are expected to aid growth in Singapore market for LNG during the forecast period.”