06-05-2013

Singapore LNG terminal starts commercial operations

Singapore’s energy sector marks a significant milestone today, as its Liquefied Natural Gas (LNG) terminal receives its first commercial cargo and commences commercial operations.

The LNG Terminal is a key infrastructure that supports Singapore’s energy diversification strategy. It allows the nation to import natural gas from around the world, thus enhancing its energy security and meeting future energy demand. The decision to build the Terminal on Jurong Island was made in 2006. Construction of the S$1.7b terminal began in 2010, and the first two tanks with regasification facilities are now completed on schedule and within budget. The Terminal will enable Singapore to access competitively priced gas globally, bringing benefits to consumers and unlocking opportunities for businesses.

After witnessing the arrival of the first commercial cargo at the Terminal, Mr S Iswaran, Minister in the Prime Minister’s Office and Second Minister for Home Affairs and Trade & Industry, said, “Energy diversification is an important part of Singapore’s strategy for energy security and resilience. The LNG terminal is a key infrastructure to achieve this objective. It will also contribute to the development of Singapore as a regional gas hub, catalyse LNG-related business opportunities and create new job opportunities for Singaporeans.”

Mr Neil McGregor, Chief Executive of Singapore LNG Corporation Pte Ltd (SLNG), the LNG Terminal operator, said, “SLNG is proud to have been able to deliver to its commitment on this nationally significant project. I would like to take this opportunity to thank Samsung C&T, who has been a wonderful partner. Not only were we able to complete this mega-infrastructure on time to start operations as planned, we did it while maintaining a world-class safety record, having achieved some 14 million man-hours of work on site without any lost-time injury. We look forward to serving our customers and the nation in time to come as Singapore grows to become a gas hub for the region.”

The LNG terminal will have an initial throughput capacity of 3.5 million tonnes per annum (Mtpa) with two tanks. This capacity will increase to 6 Mtpa by the end of 2013 when the third tank, additional jetties and regasification facilities are completed. Plans were announced in October 2012 for a fourth tank and associated regasification facilities to be added to the terminal, to raise its throughput capacity to 9 Mtpa.

Upcoming consultation for future LNG import framework
The LNG cargo was delivered by BG Group, which was awarded an LNG importer’s licence to import and sell up to 3 Mtpa of LNG. So far, BG has sold about 2.7 Mtpa of LNG.

The Energy Market Authority of Singapore (EMA) has concluded the first round of industry consultation on the post-3 Mtpa LNG import framework. Taking into consideration the