March 6, 2013 [The Business Times Singapore] - The move comes as the first underground caverns at the $890 million first-phase Jurong Rock Cavern are scheduled to be ready by the middle of this year - with the floating storage providing yet another solution to the shortage of surface land here needed for additional oil storage capacity.
After a veil of silence for well over a year, The Business Times understands from industry sources that the very large floating structure (VLFS) project, or what some dub “megafloat”, is set to be launched shortly, some six years after it was first mooted in 2007.
Responding to BT queries, a JTC Corp spokesman confirmed that “the next step of the VLFS project will be the calling of the engineering, procurement and construction (EPC) tender”.
“However, it is pending approval from the authorities. If things go smoothly, we hope to be able to launch the tender this year,” the spokesman added. JTC declined to give further details.
The plan is for the megafloat to have a minimum storage capacity of 300,000 cubic metres, or equal to that of a very large crude carrier. It would comprise two rectangular modules, each with 150,000 cubic metres capacity. Earlier estimates put its cost at $180 million at least, depending on which materials, that is whether steel or concrete, is used in its construction.
As it will be anchored to the mainland at Sebarok, there will be maritime and pollution issues, among others, to be addressed.
The strong possibility of the EPC being called this year comes well over a year since BT last reported in end-2011 that final-stage engineering for the first VLFS at Pulau Sebarok was being done by a consortium comprising Jurong Consultants and the British Maritime Technology Group.
The plan was for the VLFS to be government-led, that is built and owned initially by JTC, but private-sector run, namely by Vopak.
The Dutch group, already one of the biggest terminal operators there, was the logical choice, as the designated Sebarok VLFS site is just behind its existing surface tankfarm. It is one of four which Vopak operates, including at Banyan, Penjuru and Sakra sectors.
Separately, JTC is in the midst of picking an operator for its Jurong Rock Cavern project, and expects to award a 15-year contract for this by mid-2013. Phase 1 of JRC comprises five underground storage caverns with a total capacity of 1.47 million cbm, with the first two caverns ready in the middle of the year. It will free up about 60 hectares of surface land for chemical plants.
JTC earlier said that four participants had been shortlisted under the first of its two-stage qualification process. Some names that cropped up earlier include Vopak/Jurong International, Parsons Brinckerhoff and Germany’s Oiltanking.
