Here's what can spur a three-fold growth in Singapore's LNG imports

The city-state is pushing for initiatives to reduce carbon emissions.

Singapore may see its liquefied natural gas (LNG) imports growing by a triple over the next 10 years, a report from BMI Research said.

This is on the back of government policies to reduce carbon dioxide and sulphur emissions, gradual phasing-out of pipeline gas imports and robust expansion of domestic LNG regasification capacity.

To recall, Singapore obtains more than 60% of its annual gas imports via pipeline from Malaysia and Indonesia on a series of long-term contracts through to 2023- 2025.

"However, these deals have little chance of being renewed, given the island nation's repeated preference to meet all of its future gas needs via LNG for greater energy security and supply source diversification, driving-up the need for LNG to compensate, and allowing it to eclipse pipeline gas imports by 2023," BMI said.

The uptrend in LNG imports will be matched by a significant improvement in domestic regasification capacity. Singapore's sole import facility at Jurong Island has a nameplate capacity of 5.5mn tonnes per annum (equivalent to about 7.5bcm). Ongoing phase III expansion will increase this to about 15.0bcm by 2018.

Operator SLNG believes the plant site is also large enough to accommodate a fourth expansion, which could further increase total capacity to 20.4bcm.

This is in line with Singapore's goal to be LNG bunkering ready by 2020, with its growing prominence as a regional gas trading hub.

"Singapore holds many advantages over rivals (Japan, Korea) in the race to become a regional, global LNG hub, including an existing world-class bunkering and port infrastructure and solid international reputation as a fair, neutral trading ground. It also enjoys geographical proximity to large and growing LNG markets in the region, and firm government backing for the LNG bunkering initiative. The government has recently pledged USD12.0mn to support construction of five LNG-fuelled vessels by 2018," BMI said.