Singapore LNG market to get boost

Lynda Hong Channel NewsAsia 13 Feb 12;

SINGAPORE: 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.

- CNA/wk

Yet-to-be-completed LNG terminal draws huge demand
Robin Chan Straits Times 14 Feb 12;

SINGAPORE'S first liquefied natural gas (LNG) terminal is about 80 per cent complete and is already fielding huge demand from customers.

The $1.7 billion terminal, which is on track to become operational in the second quarter of next year, will produce LNG to supplement piped gas from Indonesia and Malaysia.

By 2014, the production capacity will be expanded from 3.5 million tonnes a year to six million, and a third LNG storage tank at the terminal is set to be completed in two years.

The plant will initially be used by energy firm BG Group, which is franchised to sell three million tonnes of LNG here a year for up to 20 years, but 90 per cent of that has already been taken up, said Mr S. Iswaran, Second Minister for Trade and Industry, during a visit to the facility yesterday.

The Energy Market Authority has responded by preparing a consultation paper that will be released next month to gather industry and public feedback on how to structure the LNG market beyond what BG Group has been appointed to do, said Mr Iswaran.

It will take into account various factors, including technical capabilities and Singapore's limitations. This is all to ensure that LNG will be 'robustly priced and competitively priced in our context', he added.

Mr Iswaran, who is also Minister in the Prime Minister's Office, also made it clear that the LNG terminal is just one part of Singapore's energy strategy.

He told the media on the sidelines of his visit: 'Our aim is to make sure that every Singapore home and all our businesses have access to reliable and competitively-priced energy. Our strategy to achieve that is energy security, and our key strategy is diversification.

'This terminal is a very important part of that strategy. Once we have this terminal fully built, it will gain us access to gas supplies around the world.

'And this is not just about geographic diversification. As you might be well aware, there is also a lot of unconventional gas being discovered around the world, such as shale gas and so on. All these are going to create new opportunities for us which we can access through the LNG terminal.'

The diversification strategy could also mean importing electricity.

Mr Iswaran said the Government is 'at an early stage in the process to decide whether we want to import electricity, and if so, how much and how to do so'.

Importing electricity could undermine existing investments by companies in LNG, some have observed, as it provides competition to power generation companies here.

But Mr Iswaran said power generation companies here would have taken that into account in their business plans.

'We are not intending to make any precipitate moves. That is why it's a very deliberate process. First, to understand the lie of the land in terms of the perspective of our incumbent gencos (power generators),' he noted.

'But we also know there are several interested parties who are keen to participate in our market, but from a generating plant offshore.

'So we need to assess how it will add to our framework, and importantly, we need to ensure that it doesn't compromise the security and stability of our system.'