Singaporean-Korean pair shakes hands on joint LNG procurement

Singapore’s Energy Market Authority (EMA) and Korea Gas Corporation (KOGAS) have penned a memorandum of understanding (MoU) to expand their cooperation in the liquefied natural gas (LNG) arena.

Since the Singaporean player believes natural gas will continue to take up a “significant share” of the country’s energy mix during the energy transition, the extended collaboration focuses on exploring joint LNG procurement. The deal forms part of EMA’s efforts to strengthen natural gas supply chains and energy security.

“This partnership with KOGAS is an important one for us in enhancing our knowledge and expertise in the management and procurement of LNG supply. Joint procurement with other LNG buyers can potentially bring benefits to all parties such as better contract terms and pricing,” said Puah Kok Keong, Chief Executive of EMA.

This builds on the MoU the duo signed in June, focusing on sharing best practices and knowledge on the procurement and management of LNG. Both parties agreed to step up their collaboration to explore joint procurement of LNG supplies and cooperate in chartering or operating gas carriers.

Meanwhile, KOGAS, Empresa Nacional de Hidrocarbonetos (ENH), and ADNOC each have a 10% stake in the Rovuma LNG development offshore Mozambique, while the remaining 70% is held by Mozambique Rovuma Venture (MRV), comprising Eni, the China National Oil and Gas Exploration and Development Company (CNODC), and ExxonMobil.

In late September, the partners handed out a front-end engineering design (FEED) contract for the project to a consortium made up of McDermott, Saipem, and China Petroleum Engineering and Construction Corporation (CPECC). The development is located in the deepwater Area 4 block, which is said to contain over 85 trillion cubic feet of natural gas.