Singapore’s upcoming liquefied natural gas (LNG) terminal could boost the country’s plan to become a regional, if not international, LNG trading hub.
The S$1.7 billion terminal at Jurong Island, which will be operational by the second quarter next year, will also enhance Singapore’s energy security.
Come next March, the authorities will decide on the future direction of Singapore’s LNG market structure.
At 53 metres high, the tank has the capacity for 180,000 cubic metres of liquefied natural gas.
When completed, the two tanks at the terminal will process 3.5 million tonnes of LNG annually to meet rising demand.
The supply could go up to six million tonnes per annum by end-2013, when additional facilities are added.
A third tank could also be ready by the first quarter of 2014.
Spanning 30 hectares, this terminal is an important part of Singapore’s plan to provide reliable and competitively-priced energy to Singapore homes and businesses.
Second Minister for Trade and Industry & Home Affairs S Iswaran said: “Once we have this terminal fully built, it will gain us access to gas supplies from around the world.
“This is not just about geographic diversification. As you may be aware, there are other unconventional gas being discovered around the world — shale gas and so on.
“So all these are going to play new opportunities for us, which we can access through the LNG terminal.”
The terminal could also enable Singapore to tap opportunities in the trading of LNG, following in the footsteps of its neighbours Malaysia and Indonesia.
Even before the LNG terminal is ready, it’s already seen strong interest from power generation companies and industrial users.
BG Group, the appointed aggregator has sold 90 per cent of its committed supply of three million tonnes per annum for up to 20 years.
Singapore’s LNG terminal has the capacity for another four LNG tanks and two LPG tanks.
And Singapore’s Energy Market Authority will embark on a consultation exercise with stakeholders and the public in March on the future of the structure of Singapore’s LNG market.
The consultation will explore LNG procurement options after BG Group’s contract has been fulfilled.
It will also study if Singapore should start importing and exporting LNG.
