Singapore's Gasco eyes flexible LNG procurement model

Market: Natural gas
27/10/26

State-owned Singapore Gasco is examining the possibility of widening its specifications for LNG imports, together with state energy regulator Energy Market Authority (EMA), the firm's chief executive Alan Heng said on 27 October during the Asia Gas Markets Conference.

The relaxation of specifications will give the firm more flexibility to procure a wider range of LNG and increase its supply options. Singapore typically imports lean LNG.

Gasco is also actively seeking more term contracts. The firm issued an open-season request for proposals in August, which closed on 26 October. It is reviewing offers to further enhance its LNG term volume portfolio. The firm currently does not have any long term contracts.

Separately, the company is considering a mixed approach of some term contract exposure, and is prepared to pay for flexibility within those term contracts.

Given that Singapore's LNG demand is relatively small compared with that of countries like Japan, Heng also called for collaboration with other countries in the region, such as Thailand, Malaysia, Indonesia and the Philippines.

Contracts should also be reworked to consider the whole of southeast Asia as a standard destination, instead of being country-specific, Heng said. The flexibility to divert LNG volumes as and when they are needed is also important, he added.

Asia is expected to lead the LNG demand growth over the next two decades, with the region contributing nearly 70pc of total demand, other panellists said. Southeast Asia is likely to be a key driver, as demand for gas-fired power generation continues to rise even in markets where overall electricity demand growth may slow. LNG will also play an increasingly important role in ensuring energy security, as output from the region's domestic gas reserves decline. This is likely to leave gas-producing countries in the region even more reliant on importing more LNG eventually.

Meanwhile, a new wave of electricity demand, including from AI data centres, is likely to further boost demand for stable power supplies.

By Naomi Ong

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