SIEW 2014: Singapore strives to be Asia’s LNG Hub

In an interview with The Chemical Daily at the Singapore International Energy Week (SIEW) reception in Tokyo, Jonathan Goh, Director, External Relations, Energy Management Authority (EMA), shared more details about Singapore’s efforts to become an LNG hub for Asia.

The country is currently seeking new LNG importers to increase its procurement capacity, following the expansion of its first LNG regasification and import terminal on Jurong Island. According to Goh, two more importers will join the British Gas Group in supplying LNG to the terminal within the year. He also mentioned that a fourth tank, which will increase the storage capacity of the terminal to 9 million tonnes per year, is currently being constructed – with plans to build a second terminal in the east of Singapore.

Singapore strives to be Asia’s LNG Hub

The selection of new LNG importers has been started in Singapore, where the LNG storage terminal is being extended. In May 2013, the country constructed the first LNG terminal on Jurong Island. Now British Gas Group is importing 3 million tons of LNG per year; however, the Government has issued the RFP to recruit new importers, in order to increase its procurement capacity. The storage capacity of the terminal has been gradually increased due to the construction of a new tank, and the plan is being implemented smoothly to become an LNG hub which supplies LNG to the Asia region, not just to Singapore.

In Singapore International Energy Week was held in Tokyo, Director Jonathan Goh from the energy plan and development department of the Energy Market Authority (EMA) of Singapore made it clear.

British Gas, having a right to monopolistically supply to the LNG storage terminal, is currently supplying 3 million tons per year. Still, Singapore has issued the RFP to recruit more importers in order to increase the amount of supply. Before the end of this year, based on the suggestions from companies, two of them is going to be selected as new importers. According to the EMA, they are expected to supply LNG from around 2018.

British Gas Group is supplying 3 million tons of LNG per year, and has secured the market to sell 2.7 million tons. New importers will have the right to supply one million tons at best, according to the RFP issued this time.

On Jurong Island, British Gas Group is currently importing 3 million tons of LNG per year.

The storage capacity of the terminal has been gradually increased. Currently three tanks have the storage capacity of 6 million tons per year. When the fourth tank has been constructed and starts to be used in 2017, the number will be 9 million tons per year. In consideration of becoming an LNG hub, which supplies not only for Singapore, but also for the Asian region, this terminal will be gradually extended further, and a new second terminal is being planned to be constructed on the east side of the country.

The 90 percent of power supply is LNG in Singapore. More LNG will be supplied via pipelines from Malaysia and Indonesia, and the importing roots will be diversified using the storage terminal. Thus, the system is going to be fortified in which LNG can be more safely secured.

Translated from the original article first published in The Chemical Daily on 16 July 2014

By : The Chemical Daily