(Picture credit: EMA)
Liquefied Natural Gas is expected to play a vital role in Singapore's economy when its new LNG terminal comes onstream next year, meeting 30 percent of Singapore's gas demand and providing the catalyst for developing the country into a vibrant regional LNG trading hub.
Neil McGregor, Chief Executive Officer of the Singapore LNG Corporation, made these points this morning at the Singapore Electricity Roundtable, which was held as part of the Singapore International Energy Week.
He noted that "Singapore's transition gas demand was mainly motivated by power generation and the industrial sectors. Moreover, the transition from oil to gas for power generation was precipitated by the availability of piped natural gas from Malaysia and Singapore, the efficiency of combined cycle gas turbines (CCGTs), concerns about the environment, and the price competitiveness of gas when compared with oil.
By 2014, McGregor said that ''30 percent of Singapore's gas demand would be met by LNG imports. This would enhance the country's energy security", making it less susceptible to price and supply risks, while supplementing the city-state's rising energy.
The LNG terminal would also present Singapore with the opportunity to developing its status as a trading hub should it develop auxiliary services such as LNG trans-shipment, break-bulk services, storage and reloading.
With LNG uptake expected to reach 3 million tonnes per annum (mtpa) by 2013, Singapore's Energy Market Authority has also embarked on a public consultation exercise to determine its future LNG procurement structure.
By :Darryl Chan, EMA