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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
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