Keppel Gas said on Monday it completed its first liquefied natural gas (LNG) cargo import under Singapore’s spot import policy, which allows up to 10 percent of the city-state’s imported long-term contracted gas supplies to be on a spot cargo basis.
A spot rate is usually a one-time, shipment-specific rate; spot freight rates can fluctuate by the day. That compared with contracted rates, which are typically negotiated and are fixed for a set period.
“We are pleased to have deepened our collaboration with industry partners across the gas value chain to deliver competitive gas supplies promptly,” Janice Bong, general manager of energy infrastructure at Keppel Infrastructure, said in a statement filed to SGX before the market open on Monday.
“By tapping the opportunities offered by the spot LNG market, we are able to ride on global trends to support our integrated energy business over the long term,” she said.
Keppel said the spot cargo of 160,000 cubic meters of LNG came from an LNG liquefaction project in North America, marking the first time the company has imported its gas supply from outside Southeast Asia.
The cargo, which reached Singapore last week, will be regasified as feedstock for Keppel’s downstream customers and end-users, including Keppel Merlimau Cogen, Keppel said in a filing to SGX before the market open on Monday. Keppel Merlimau Cogen, which has a 1,300 megawatt gas turbine facility, is an independent power project operating in Singapore’s electricity market.
Keppel Gas, a wholly owned subsidiary of Keppel Infrastructure, imports, ships and retails natural gas in Singapore’s market; its natural gas supply includes long-term piped natural gas and LNG contracts. The natural gas is then supplied to major refineries, petrochemical companies, industrial firms and Keppel Merlimau Cogen, the filing said.