Singapore’s first LNG shipment coming from Qatar

Singapore LNG Corporation Pte Ltd (SLNG) has procured Singapore’s first LNG (Liquified Natural Gas) shipment from Qatargas Operating Company Limited (Qatargas), the largest LNG producer in the world.

It is stated in a Press release that this LNG cargo is one of a number of cargoes that will be used to cool down and commission Singapore’s new LNG Terminal, getting it ready for full and continuous operations by the second quarter of 2013, as according to plan. Once fully commissioned, the Terminal will open for business and SLNG’s primary focus will initially be on servicing the needs of the Aggregator and its customers by receiving, storing and sending out LNG for the domestic market. As Singapore’s LNG market grows and develops, SLNG will move in tandem, with additional capacity already committed, to explore new business opportunities and pursue its goal of becoming a regional LNG trading hub.

Since early this year, SLNG has held discussions with more than 10 potential LNG suppliers from around the world. Ultimately, the decision was made to purchase the cargo from Qatargas because they offered the most competitive terms overall. The cargo is expected to arrive in Singapore from Qatar in the first quarter of 2013 and will be delivered on board either a Q-Flex or a Q-Max LNG vessel, which are the two largest LNG vessels in the world.
The cargo will be progressively transferred to the Terminal’s storage facilities during the initial cool down process.

“The purchase of LNG from Qatargas is a significant milestone not only because it is Singapore’s first LNG shipment, but also because it affirms that Singapore has the capability to import LNG from anywhere around the world,” said Mr. Neil McGregor, Chief Executive Officer of SLNG. “This opens up future supply options that were not previously available to Singapore, and is a great boost to its efforts to ensure energy security. Once the new LNG Terminal is commissioned and further developments are progressively added, Singapore will move closer to its aim of becoming an LNG Hub in the Region, adding depth to the nation’s already well established energy sector.”

Mr. Khalid Bin Khalifa Al-Thani, Qatargas Chief Executive Officer, said: “Qatari LNG continues to have a key role to play in helping countries around the world improve the diversity of their energy supplies. We are pleased with this development which will help meet the growing demand for energy in Singapore and help us build our relationship with a new customer.

Qatargas is at the forefront of commissioning new LNG Terminals and is confident of its continuing ability to maintain safe, long-term reliable supplies of clean LNG energy to countries where it is needed the most.”

The Singapore LNG Terminal will be the second LNG terminal in South East Asia to procure commissioning cargo from Qatargas. In June 2011, Qatargas delivered a commissioning cargo to Thailand’s Map Ta Phut LNG Terminal. Qatargas has developed considerable expertise in supporting the commissioning of new LNG Terminals globally. To date, the company has provided commissioning cargoes to eight LNG terminals, with Singapore being the ninth such arrangement.

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