Kristie Neo Channel NewsAsia 24 Oct 12;
SINGAPORE: Singapore will be investing half a billion dollars to build a fourth storage tank at its Liquefied Natural Gas (LNG) terminal on Jurong Island.
Speaking at the Gas Asia Summit, Minister in the Prime Minister's Office and Second Minister for Trade & Industry S Iswaran said the fourth tank will enhance Singapore's energy security by allowing further diversification of its fuel sources.
"We want to diversify our sources of fuel and energy, and LNG gives us a very important opportunity to do that," said Mr Iswaran. "And with the recent developments in US and other parts of the world, in terms of shale gas, that enhances the opportunity."
The tank is expected to begin operations by 2017 and it will boost the capacity of the LNG terminal to about nine million tonnes per annum (Mtpa).
Mr Iswaran added that the increased storage infrastructure could also catalyse business opportunities such as LNG trading, break-bulk services and LNG bunkering.
The first phase of the LNG terminal development at Jurong Island with two LNG storage tanks is nearly complete and it is on track to begin commercial operations in the second quarter of 2013.
A third LNG storage tank, targeted for completion by the fourth quarter of 2013, will increase the throughput capacity to six Mtpa.
Mr Iswaran also did not rule out the possibility of building more tanks in future.
Jurong Island still has room for another two to three tanks.
Along with Singapore's experience in oil trading, experts agree this new tank brings Singapore a step closer to realising its aim to become an LNG trading hub.
"(Singapore) has some expertise in oil trading and that can be extended into LNG trading as well and investors also have confidence in putting in their money, given that we have been fairly successful as an oil trading hub," said Chloe Hang, associate editor of Asia LNG at Platts.
Mr Iswaran said authorities will now be focusing on front-end engineering design, as well as calling for tenders for the new project.
- CNA/ck
$500m plan to grow LNG terminal
Fourth gas storage tank will help diversify Republic's fuel sources
Feng Zengkun Straits Times 25 Oct 12;
SINGAPORE will build a fourth storage facility at its new liquefied natural gas (LNG) terminal that will begin operations next year.
The new tank, which is likely to cost $500 million and be completed by 2017, will increase the terminal's capacity by 50 per cent to nine million tonnes a year.
This will enhance the Republic's energy security by allowing it to import gas from more countries and also tap into new opportunities created by the growing global supply of natural gas.
Minister in the Prime Minister's Office and Second Minister for Trade and Industry S. Iswaran announced this yesterday at the opening of Gas Asia Summit, part of this year's Singapore International Energy Week.
Now in its fifth year, the annual energy event is a platform for professionals, policymakers and commentators to discuss issues.
Currently, about 80 per cent of Singapore's electricity is generated using piped natural gas from Malaysia and Indonesia.
The other 20 per cent comes from fuel oil and other sources such as waste and renewable energy.
After the LNG terminal begins operations next year, Singapore will be able to import and store liquefied gas from other countries around the world.
This is the second time the capacity of the terminal has been expanded even before it starts operations. The initial plan was to have two storage tanks and handle 3.5million tonnes of LNG each year.
Just months after the terminal's ground-breaking ceremony in March 2010, a third tank was announced to boost capacity to six million tonnes a year.
Mr Iswaran said the fourth tank will improve Singapore's energy security by allowing further diversification of the country's sources for the fuel.
"The increased storage infrastructure could also catalyse business opportunities such as LNG trading, break-bulk services and LNG bunkering," he added.
A report by the International Energy Agency (IEA) in June estimated that global natural gas consumption will rise 17 per cent to 3.94 trillion cubic metres by 2017 from 2011, with Asia powering the growth in demand.
Global gas supply increased by 93 billion cubic metres, or 3 per cent, from 2010 to last year, with the increase coming largely from the United States, Russia and Qatar, said the IEA report.
Mr Iswaran noted that, in the past few years, global energy players such as Shell, BP and Gazprom have set up trading desks here.
The new tank is also timely because shale gas, another fuel, has become more viable in the US and other countries, replacing their need for imported gas.
"With energy demand in Europe slowing due to the economic downturn, LNG suppliers have turned towards Asia, where demand for gas remains bolstered by economic growth and Japan's shift from nuclear power to gas," said Mr Iswaran.
"We're also seeing shorter-dated contracts as opposed to long- term (contracts) and I think there's room for greater development of a spot market."
Energy experts said Singapore could take advantage of these global trends to become a regional LNG trading hub.
Singapore is already one of the world's biggest oil-refining hubs and a major bunkering port.
Mr Iswaran also said yesterday that the take-up of LNG from the new terminal has been"faster than initially anticipated".
He added that the Government is now studying possible frameworks for the future import of LNG.
