Singapore is exploring the possibility of constructing a second multibillion-dollar liquefied natural gas (LNG) terminal in a bid to position itself as the premier LNG trading hub of Asia.
While not explicitly stating so, the Energy Market Authority (EMA) has called a tender Monday for a consultant to carry out feasibility studies. The regulator, in its issued tender document, said that it is seeking "consultancy services for [a] feasibility study of [developing a] LNG terminal and assessment of gas network infrastructure plans."
EMA's tender follows closely on the heels of a statement issued by International Enterprise (IE) Singapore in October, which stated that the city-state is well-positioned to become Asia's LNG trading hub. IE Singapore pointed out that with no significant LNG players five years ago; Singapore has managed to attract global LNG players to set up their operations locally. The country is now home to 14 companies with LNG trading or marketing desks, including the likes of BG Group, BP, Gazpom and Shell.
Singapore is at present in the midst of constructing a fourth storage tank at its sole $1.7 billion LNG terminal development on Jurong Island, which is on track to start operations in the second quarter of next year. A third storage tank is scheduled for completion by the fourth quarter of next year, while a fourth storage tank is slated to start operations by 2017. After the fourth tank is commissioned, the LNG terminal's capacity will stand at around nine million tonnes per annum.
The country is a key port for vessels passing through the traditional Suez Canal and Malacca Strait route on their way to Northern Asian countries such as Japan and South Korea.
Malaysia is also eyeing a piece of the LNG pie with the establishment of a $1.3 billion LNG terminal in the Pengerang Integrated Petroleum Complex. The LNG terminal – also known as the Pengerang Independent Deepwater Petroleum Terminal – will be developed by the Johor state government, Netherland's Royal Vopak and Malaysia's Dialog Group.
PIDPT – which will be constructed over two phases – is designed to have a total storage capacity of five million cubic meters. The terminal will be used for storage, loading and regasification of LNG, both for trading and domestic use. The first construction phase of PIDPT has already started, and is scheduled for completion by 1Q 2014.
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