Regional LNG: Singapore, S. Korea in LNG joint procurement pact

By Romel S. Gurky

The Energy Market Authority (EMA) of Singapore announced on Tuesday that it has signed an expanded Memorandum of Understanding (MoU) with Korea Gas Corporation (KOGAS), aimed at exploring joint procurement of LNG. The agreement, signed at the Singapore-Korea Business Forum by Puah Kok Keong, Chief Executive of EMA, and Choi Yeon-Hye, President and CEO of KOGAS.

The expanded MoU builds upon a previous agreement made in June, which focused on sharing best practices in LNG procurement and management. The new scope will include the exploration of joint procurement, along with potential cooperation in chartering or operating LNG carriers. This partnership is expected to enhance both countries' capabilities in managing LNG supply chains.

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Puah emphasized the importance of this collaboration, stating, “Natural gas will continue to play a crucial role in Singapore’s energy mix during the transition to alternative energy sources. Joint procurement with other LNG buyers, such as KOGAS, can bring mutual benefits, including better contract terms and pricing.”

The collaboration is part of Singapore’s broader strategy to ensure a stable and diversified energy supply, while working towards long-term energy security and resilience during the global energy transition, EMA said.

Editing by Alexander Ginting