LNG terminal will diversify energy sources and enhance Singapore's energy security
LNG TERMINAL WILL DIVERSIFY ENERGY SOURCES AND ENHANCE SINGAPORE’S ENERGY SECURITY
Singapore, 13 February 2012 - Singapore’s first liquefied natural gas (LNG) terminal will further enhance Singapore’s energy security as it offers geographical diversification of LNG imports, making us less susceptible to price and supply risks. The LNG terminal which will allow Singapore to import gas from countries all over the world will also help to supplement our rising energy demand when it comes on-stream in 2013. As a fuel source, LNG will play an important role in helping to address Singapore’s energy challenges of energy security, economic competitiveness and environmental sustainability.
Good progress made with construction of three tanks and jetties underway
Located on Jurong Island, the LNG terminal is about 80 per cent complete. The LNG terminal’s good progress was shared by Mr Neil McGregor, Chief Executive Officer of Singapore LNG Corporation Pte Ltd (SLNG) during a visit to the terminal’s 30-hectare site by Mr S Iswaran, Minister in the Prime Minister’s Office and Second Minister for Home Affairs and Trade & Industry. Mr McGregor added that since the terminal’s groundbreaking in March 2010, construction of key installations including the first two LNG storage tanks and the primary jetty are well underway.
The LNG terminal will have a throughput capacity of 3.5 million tonnes per annum (Mtpa) when it is operational in the second quarter of 2013. This capacity will increase to 6 Mtpa by the end of 2013 when additional jetties and regasification facilities are completed. The terminal’s third tank is targeted for completion by the first quarter of 2014. Each tank which is 53-metre high, can hold 180,000 cubic metres of LNG, big enough to fit three Boeing 747 aircraft stacked on top of one another.
Upcoming consultation for future LNG procurement framework
The current LNG aggregator for Singapore, BG Singapore Gas Marketing has sold about 2.65 Mtpa of LNG and is expected to reach 3 Mtpa by 2013. As BG has an exclusive licence to import LNG and sell regasified LNG in Singapore for up to 3 Mtpa of LNG or until the year 2023, whichever is earlier, a study is underway to explore several possible frameworks for future importation of LNG once BG’s contract ends.
To this, Mr Iswaran announced at the visit that the Energy Market Authority will be issuing a post-3Mtpa LNG import consultation paper to gather industry and public feedback in March 2012. Noting that the needs of consumers and the LNG terminal’s efficiency are key considerations for the framework, Mr Iswaran stressed that the eventual framework should allow Singapore to continue to access competitively-priced and reliable supplies of LNG.
When completed, the LNG terminal will contribute to the development of Singapore as a regional gas hub and is expected to create new job opportunities for Singaporeans in a significant and rapidly growing industry.
Source: Energy Market Authority