Singapore LNG Terminal Moves Into Execution Phase
Singapore’s second liquefied natural gas (LNG) terminal has advanced to the execution phase.
Separate agreements were signed between the terminal’s developer and operator, Singapore LNG Corporation Pte Ltd (SLNG), and entities of Mitsui O.S.K. Lines Ltd (MOL) group, Jurong Port Pte Ltd, and Wood plc group.
SLNG said in a news release that it has entered into an agreement with a subsidiary of MOL to charter a newbuild floating storage and regasification unit (FSRU). The unit will have a storage capacity of 7.06 million cubic feet (200,000 cubic meters) and a regasification capacity of 5 million metric tons per annum (mtpa). It is set to be constructed by South Korean shipbuilder Hanwha Ocean.
The FSRU is expected to be operational by the end of the decade, and together with the existing SLNG Terminal on Jurong Island, will allow SLNG to increase its combined LNG throughput capacity to up to 15 mtpa. The FSRU will also offer greater flexibility to SLNG in meeting Singapore’s future gas demand, according to the company.
SLNG CEO Leong Wei Hung said, “The second LNG terminal underscores the continued importance of LNG in Singapore’s energy mix, as well as SLNG’s continual role and responsibility in helping to ensure Singapore’s energy security. As Singapore continues to prosper, this investment in additional capacity will help ensure the nation is able to capture opportunities and remain on a path of growth, while pursuing its energy transition goals. SLNG is very happy to have the support of Jurong Port, and to work with well-established industry leaders like MOL and Wood on this project”.
MOL President and CEO Takeshi Hashimoto said, “MOL has been actively engaged in a variety of global FSRU projects, establishing substantial expertise to provide services with assured reliability. We are delighted to be able to contribute our operational and technical expertise to support SLNG and Singapore in this important energy security project”.
Under the agreement with Jurong Port, SLNG will develop the second LNG terminal at Jurong Port where the FSRU will be berthed. Onshore connecting infrastructure will be developed to connect the FSRU to onshore pipelines and the Singapore gas pipeline network.
Jurong Port CEO Terence Seow said, “Jurong Port has been playing a key role in supporting Singapore’s growth over the years, and we are happy to also play a part in Singapore’s energy security. Our waterfront infrastructure and proximity to existing gas network will be helpful to support the operation of the second LNG Terminal”.
Further, SLNG awarded the front-end engineering design (FEED) contract to a subsidiary of Wood to define the scope of the onshore connecting infrastructure. The FEED will provide the engineering design and comprehensive scope of works required for the engineering, procurement and construction (EPC) contract for the construction of the terminal.
The FEED is expected to be completed around mid-2025, and the request for proposal process for the EPC contract will follow thereafter.
Earlier in the month, Singapore’s Energy Market Authority (EMA) and South Korean state-backed Korea Gas Corp. (KOGAS) signed an agreement to explore potential joint purchases of liquefied natural gas (LNG).
Under a memorandum of understanding (MOU), Singapore said it hopes to learn from major LNG importer South Korea about the procurement and management of LNG supply.
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