SINGAPORE : Consumer energy prices in Singapore could drop by as much as 20 per cent in five years' time, according to industry players speaking at Singapore's electricity roundtable.

They said increased competition following the launch of the country's first Liquid Natural Gas (LNG) terminal will put pressure on prices.

LNG will soon be supplied to energy generators to create power.

PowerGas, a unit of Singapore Power, is to open Singapore's first LNG terminal in 2012.

As more industry players look to tap into the new energy source, some watchers said this could lead to a cut in consumer energy prices by as much as 20 per cent.

"I think the challenge will be at what price to set the LNG at, which will be a function of what's going on in the global oil markets at that time," said Michael Thomas, VP of CRA International.

The search for alternative energy sources such as LNG has been intensifying amid rising oil prices.

Trade in LNG is expected to double between 2005 and 2012 on the back of increasing energy demand.

Dan Werner, GM (Singapore LNG), BG Group said: "The goal of BG, as the demand aggregator in LNG imported to Singapore, is to provide Singapore generators and other users of natural gas with a competitively priced supply of fuel when looking at the Southeast Asian markets."

BG Asia Pacific is set to deliver three million tonnes of LNG annually to augment Singapore's energy sources. - CNA /ls