Singaporean firm to import its ‘first spot LNG cargo’ to China

Nebula Energy’s Dubai-headquartered subsidiary AG&P LNG has signed an agreement with BK LNG Solution (BKLS), a Singapore-based liquefied natural gas (LNG) player, to import the latter’s spot LNG cargo to China. Furthermore, the two agreed to collaborate on small-scale LNG (ssLNG) initiatives using Vietnam’s LNG terminal.

The signing ceremony was held on July 11, 2024, with cargo scheduled to be delivered by the end of August 2024. According to the Singaporean player, this will be its first spot cargo delivery to China. 

Henry Kim, President of BK LNG Solution, said: “We are pleased to announce the signing ceremony where we formalized our agreement to bring our first spot cargo into China. This collaboration demonstrates our dedication to providing innovative and diversified LNG solutions to meet the dynamic needs of the Chinese LNG market.”

Additionally, the duo is set to work together on ssLNG initiatives by using the terminal at Cai Mep, Vietnam, to deliver breakbulk solutions to China using small LNG carriers and ISO containers.

AG&P LNG bought a 49% stake in Cai Mep, one of two existing LNG terminals in the country, in March. Two months later, it was disclosed that commissioning activities would start in June, with commercial operations expected to start in September 2024.

“We look forward to advancing our collaboration with BKLS beyond the first spot cargo Transaction. Together, we aim to set new benchmarks in delivering reliable and sustainable LNG solutions to support China’s growing energy demands. Diversifying energy sources with LNG enhances China’s energy security and supports its economic growth,” noted Karthik Sathyamoorthy, CEO of AG&P LNG.

“Our collaboration on Small Scale LNG initiatives not only expands LNG distribution capabilities but also ensures quicker, more responsive delivery of LNG, crucial for meeting increasing demand across China.”

As partners expect China’s LNG import market to grow, the agreements are in line with Nebula Energy’s desire to fast-track LNG terminal development across emerging markets in South and Southeast Asia, which it cited as the reason for purchasing a stake in AG&P LNG in January.