Singapore commits to LNG for meeting future energy needs

Singapore has decided to go ahead with liquefied natural gas (LNG) imports to meet future energy demand and ease its dependence on piped supplies from Indonesia and Malaysia. The EMA said in a report that it sees the politically stable Australia as the preferred supplier. Other potential suppliers are Qatar and Iran, the EMA said.

The terminal is expected to cost about $500 million, Singapore's Minister for Trade and Industry Lim Hng Kiang said. Industry sources said the funding could partly come from the city's power plants that dominates Singapore's natural gas consumption and the overall project would cost more if investments in LNG tankers were taken into account.

Singapore has long sought to diversify its gas supplies, all of which come via three pipelines from Indonesia and Malaysia to fuel 80% of the island's power generation that is growing at more than 4% a year. Singapore's anxiety grew sharper two years ago when a technical outage disrupted gas flow to Singapore's power stations via the Indonesian pipeline, plunging nearly half of the wealthy city-state into darkness.

Singapore is the latest to join the growing list of LNG importers. India began imports in 2004 and China took in its first LNG cargo this summer, while the US is rushing to expand import capacity. Thailand committed to its first terminal last month after sealing a key Iranian LNG supply deal.

- Now we know how much it's going to cost (and that's not counting the LNG tankers), who are the potential suppliers, and that we are joining a race that has already started. Observe also the "funding from our power plants" part, and how it ties in with the PR effort, now getting into gear, about the full liberalisation of the electricity market in Singapore.

Translation? Higher electricity prices, with much greater volatility. Electrical rates varying in near real-time (every half an hour) instead of being adjusted once every quarter. Increases in costs due to LNG infrastructure and variations in LNG prices being passed on to the consumer (ie, you!).

- One more thing, if you have followed this blog from early on, you may know that the government's response to peak oil and increasing energy prices is to let market forces work it out. That's exactly what they're going to be doing. At least they have been consistent about it, so don't complain, ok?

(2006-08-17 07:24:17 SGT) [Energy] Permalink

Senoko Power favours further opening up of electricity market

channelnewsasia.com :

Allowing households and smaller businesses to choose their electricity supplier will be a key step in the liberalisation of the energy sector, according to Senoko Power. Senoko's parent company, Temasek Holdings is expected to make a decision about the sale of the three power companies it owns - Senoko Power, PowerSeraya and Tuas Power - by the end of the year. The 3 power companies produce nearly 90% of Singapore's electricity. And their sale has been on the agenda since 1999 as part of the effort to liberalise Singapore's electricity market.

For now, the gencos can only sell direct to industrial and commercial customers, or about 75% of Singapore's electricity marketplace. Singapore Power is the only electricity distributor to some one million households here. The Energy Market Authority is expected to decide by year-end on opening up the electricity market to more suppliers.

(2006-08-17 06:51:08 SGT) [Energy] Permalink

Energy authority mulling over market for electricity futures

business-times.asia1.com.sg :

The Energy Market Authority (EMA) is looking into the possibility of starting a market for electricity futures, as revealed in a recently released "Statement of Opportunities for the Electricity Industry in Singapore". Industry sources said a futures market may take a few years to take off, seeing that electricity futures markets in other countries are generally not very liquid.

At present, only about 70% of the marketplace here is contestable. 'We would like to see full retail contestability first,' the source said, referring to retailers here being able to supply all customers, including smaller businesses and households. EMA indicated in its report that it would decide on full contestability this year.

(2006-08-17 06:41:15 SGT) [Energy] Permalink

Investors sue BP execs over Alaska shutdown

news.yahoo.com :

Shareholders have filed a lawsuit against top executives of BP, accusing them of letting down investors by failing to repair a pipeline that forced a shutdown of part of the Alaskan Prudhoe Bay oilfield.

The lawsuit, led by investor Sue Pincus to benefit all BP shareholders, alleges the company, its executive directors and board members "allowed one of BP's prized assets" - the Prudhoe Bay oil field - to decay to the point that it was forced to shut operations in the eastern half. "Defendants became aware of the problem of corrosion in the pipeline years ago, but took no substantial steps to remedy the situation," the lawsuit said.

(2006-08-17 06:33:12 SGT) [Energy] Permalink

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