Reclaim land at islands for a second petrochemicals hub

Straits Times 29 Oct 12;

WITH the recent plans to build a fourth storage facility at the liquefied natural gas (LNG) terminal on Jurong Island ("$500m plan to grow LNG terminal"; last Thursday), Singapore's energy sector is once again in the spotlight.

With the ever-tightening space constraints on Jurong Island, it may be time to explore additional areas for reclamation so as to maximise the potential of our energy sector.

Singapore is the third-largest global oil refining and trading centre, and the petroleum and petrochemicals industry is a key pillar of our economy.

However, with most of the land on Jurong Island already in use, the Government should launch a feasibility study into reclamation on the islands further south, namely Pulau Bukom, Pulau Busing and Pulau Sebarok.

These islands already contain crucial facilities, such as the Shell Refinery on Pulau Bukom, which churns out 500,000 barrels per day.

Joining these islands through reclamation would create much needed land for a further expansion of the petrol and petrochemicals industry, and fuel its continued growth.

The presence of another significant petrochemical hub is a potentially lucrative prospect, especially because of its close proximity to Jurong Island, which provides for the easy integration of operations between the two.

Furthermore, the scarcity of industrial land on Jurong Island has forced some global companies to search for alternative sites in the region.

Malaysia and Indonesia have already started developing their own respective downstream oil sectors. This is a cause for worry as both countries already have extensive upstream oil sector operations and the construction of a petrochemicals hub would be a logical and convenient step to take.

Furthermore, the Fukushima nuclear disaster has caused many countries to re-evaluate their reliance on nuclear energy.

If Singapore does not rapidly expand its energy sector to tap this huge potential in the global oil market, it stands to lose out on the potentially lucrative returns, and may also see a decline in its status as a key global oil hub.

The Government has launched numerous initiatives to tap the potential of the energy sector, such as the Jurong Rock Caverns, an underground oil storage facility.

However, it is unwise to put all our eggs in one basket.

It may be prudent to reclaim land and subsequently develop a second petroleum and petrochemicals hub to complement Jurong Island for the long-term benefit of Singapore's energy sector.

Kuek Jia Yao