SINGAPORE: The first phase of setting out a roadmap to implement a Secondary Gas Trading Market (SGTM) in Singapore has been completed, Minister for Trade and Industry (Industry) S Iswaran said at the opening of the fourth Gas Asia Summit on Wednesday (Oct 26).
Mr Iswaran added that an industry working group, which will "deliberate the details" leading to the start of the SGTM, will begin discussions in early 2017.
Mr Iswaran had previously announced the development of the SGTM in 2015. The market aims to give gas buyers and sellers the opportunity to trade gas domestically on a short-term basis. It could also provide more flexibility for gas buyers to manage their portfolios, and to encourage better price discovery.
"This will provide gas buyers more options to manage uncertainty," he said on Wednesday.
Mr Iswaran said the Energy Market Authority (EMA) had suggested allowing buyers to contract up to 10 per cent of their gas demand as spot Liquefied Natural Gas (LNG). This is on top of industry feedback which reflected preference for such spot imports to be on a first-come-first-served basis, subject to a market-wide cap, to provide buyers with greater flexibility.
"EMA is reviewing the detailed feedback and will consult the industry later this quarter in how to operationalise the spot LNG import policy," he said.
Mr Iswaran had announced earlier this week that Pavilion Gas and Shell Eastern Petroleum were Singapore's new term LNG importers, along with upcoming plans for third-party spot imports and new piped natural gas imports on a case-by-case basis.
In the area of infrastructure development, Mr Iswaran said Singapore will be increasing the throughput capacity of its Jurong Island LNG terminal from the current six million tonnes per annum (Mtpa) to 11 Mtpa by early next year. Meanwhile, the authority is also studying options to enhance energy security through the potential development of a second LNG terminal.