Singapore LNG Wins Approval for Second Terminal
10.26.2023 By Tank Terminals - NEWS

October 26, 2023 [LNG Prime]- Singapore LNG, the operator of the country’s first LNG import terminal on Jurong Island, has secured approval from the Singapore government to develop and operate the country’s second LNG import facility.

 

Singapore’s Deputy Prime Minister Lawrence Wong announced SLNG’s plan to develop the second LNG terminal in Singapore on Tuesday during SLNG’s 10th anniversary gala dinner.

He said in a speech that the terminal would have up to 5 mtpa capacity to “meet Singapore’s energy needs and enhance our energy security.”

“Our current LNG terminal has throughput capacity of about 10 million tonnes per annum (mtpa). Our peak utilisation this year was 60 percent, so we currently still have some headroom,” he said.

“But this will eventually not be enough as our demand for LNG continues to grow,” Wong said.

With a second terminal, Singapore would be able to meet its power generation needs entirely with LNG, if necessary, Wong said.

“Unlikely we will have to do so anytime soon, since we will continue to have access to piped natural gas,” he said.

“But having the additional capacity will be helpful; it will give SLNG the flexibility to better meet the growing LNG needs of the shipping industry and the wider region, and advance our position as an LNG bunkering and trading hub,” Wong said.

“We are still studying the exact size and the best way to build this terminal. All of you know that waterfront land comes at a premium in Singapore,” Wong said.

“So one possibility is to start with an offshore terminal at Jurong Port. Further studies are being conducted, and more details will be announced in due course,” he said.

 

FSRU

State-owned Singapore LNG said in a social media post that it has won approval to develop this “strategically important” project, but it did not provide further information.

According to several media reports, citing a statement by Singapore LNG, the company plans to launch a tender soon to charter a floating storage and regasification unit (FSRU) which will serve the second import facility.

Singapore LNG aims to launch the facility by the end of this decade, the reports said.

LNG Prime contacted Singapore LNG to comment on the matter, but we did not receive a reply by the time this article was published.

 

Expansion plans

Singapore LNG also released a document on Wednesday saying it plans to increase the available LNG storage capacity to serve rising demand for the fuel and broaden the options for LNG trading and other businesses.

“Several options are being explored in this regard, including bringing in a floating Storage and regasification unit (FSRU) which would be a relatively easier to implement option; and/or building additional storage tanks at the terminal that would be “future-ready” – equipped with membrane technology that provides the flexibility for the tanks to be used to store other greener fuels like ammonia,” it said.

“There are also other expansion projects in the pipeline, such as building out the tertiary jetty to enable more LNG bunkering and small-scale reload activities; and constructing a more permanent and upgraded LNG truck loading facility that can accommodate more trucks and operate more efficiently, with better equipment,” the firm said.

Singapore’s first LNG terminal began commercial operations in May 2013.

It currently operates with two jetties, three storage tanks of 180,000 cbm each, a fourth storage tank of 260,000 cbm, and a peak sendout capacity of around 11 mtpa.

In March 2021, Singapore’s Energy Market Authority appointed ExxonMobil LNG Asia Pacific, a unit of the US energy giant, and Singapore’s Sembcorp Fuels as new term importers.

The two firms joined the first two term importers, Pavilion Energy Singapore and Shell Eastern Trading.

In order to boost competition and provide more options for gas buyers, the EMA launched a request for proposals last year to add two more LNG term importers.

 

LNG imports rose last year

According to GIIGNL data, LNG imports into Singapore increased by 0.6 million tons last year, offsetting a disruption in pipeline gas supplies from Indonesia.

Singapore imported 3.7 million tons last year, a rise of 18.6 percent compared to the previous year.

The chartering of additional LNG floating storage in application of temporary measures, introduced by the EMA, to secure the country’s energy supply, has also contributed to LNG imports growth, it said.

This includes the charter of MOL’s FSRU Challenger, now renamed Bauhinia Spirit and serving Hong Kong’s first LNG import terminal.

 

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