Singapore GasCo secures additional LNG cargoes and looks for term deals despite the war volatility
GasCo, Singapore's state-owned gas buyer, has purchased additional cargoes to offset the supply shortages caused by a U.S./Israel war against Iran.
Kpler data show that the city-state imports increasing amounts of LNG. It reached 5.93 million tonnes last year. Nearly half of this was shipped from Qatar.
In an email response, Chief Executive Alan Heng said that while a portion our LNG imports have been curtailed Singapore GasCo took proactive steps to secure more cargoes in order to supplement existing supply sources.
In the short-term, we are focused on securing LNG shipments to make up for the supply curtailed from existing suppliers.
Two Spot Cargoes from Australia, one from Mozambique
Kpler data revealed that Singapore has received two spot cargoes, one from Australia and the other from Mozambique, since the beginning of the war on February 28.
The first Australian cargo arrived on March 27, from the APLNG Project, and the second on April 9 from the Gorgon LNG Project. The third spot cargo, which was loaded at the Coral South floating LNG project off Mozambique on April 19, was delivered.
Singapore imported three LNG cargoes in March of last year from Qatar, as part of a total import of 2,76 million tonnes.
GasCo has not responded to a comment request on its spot cargo deliveries and procurements to Singapore.
STILL PLANS TO GO MARKET FOR LONG TERM SUPPLIES IN 2026
Heng said that GasCo's LNG purchase plans still include a trip to the market in 2026 for long-term supplies.
He added that "the market is currently disrupted, and it remains volatile." "Agencies are working with trusted, credible suppliers."
Heng said in November that GasCo would be seeking offers for LNG deliveries starting 2028 during the first quarter this year.
The Asian LNG price has risen since the beginning of the war due to Iran's blocking of the Strait of Hormuz which carries 20% of global LNG and damages to Qatar's LNG liquefaction train.
The price of a million British thermal units (mmBtu) has increased 54% in the last month, to $16.05.
Analysts slash global supply outlooks
Analysts also reduced global supply forecasts and predict that high prices will lead to a destruction of demand across Asia.
"The market is volatile and uncertain, and we expect it to continue," said Hang.
He said that the company would work closely with regulators and gas suppliers to ensure Singapore's reliable energy supply.
We are actively monitoring and managing supply curtailments in Singapore, and acquiring additional LNG supplies where necessary. (Reporting and editing by Clarence Fernandez; Additional reporting by KokXinghui, Editing by Emily Chow)
(source: Reuters)
