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Singapore LNG Terminal, Jurong Island, Singapore

Key Data

The Singapore liquefied natural gas import terminal is the country's first LNG regasification facility. Located in Jurong Island, the facility will be used for importing LNG, reloading and regasification and storage. It will be a hub for physical LNG trading and regional redistribution. The S$1.7bn project is being developed by Singapore LNG.

The project is the first open-access multi-user terminal in Asia. It is capable of importing LNG and re-exporting it to various suppliers. The terminal will have a capacity of six million tons per annum (mtpa).

The project is being constructed on a 30ha site in the south-western part of Jurong Island. Construction on the project began in March 2010 and will be completed by 2013. As of August 2011, the project was 50% complete.

The unused storage capacity in the terminal during the initial years will be used for physical LNG trading. As part of storage and reloading service, the traders will be able to store and reload LNG for exports. The storage capacity will reduce with the increase in domestic LNG demand. With a favourable response from traders for LNG storage, additional storage tanks will be built.

"The Singapore LNG import terminal is the country's first LNG regasification facility."

The contract to build and operate the terminal was assigned to PowerGas in September 2007. In June 2009, Singapore's energy statutory board Energy Market Authority (EMA) took over the responsibility of the development and ownership of the LNG terminal from PowerGas as it was found that the development of the project on commercial lines was not viable. 

A new company, named Singapore LNG (SLNG), was formed by the EMA to oversee the development activities of the terminal.

Singapore LNG terminal background

Singapore depends on natural gas for almost 80% of its electricity needs. The country imports natural gas from Indonesia and Malaysia. With forecasts predicting that the demand for gas will exceed that of supply, the country is looking at LNG as an alternative. 

In 2005, the EMA appointed Tokyo Gas Engineering to conduct a feasibility study on various ways to import LNG and possible models of an LNG terminal. 

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LNG terminal construction

"Singapore depends on natural gas for almost 80% of its electricity needs."

The terminal was originally planned with two storage tanks of 188,000m3 each. Both have a send-out capacity of 3.5mtpa.

In November 2010, SLNG announced the addition of a third 188,000m3 storage tank to the terminal. The third tank will provide Singapore with better flexibility to meet future gas requirements. It will be commissioned by early 2014.

In addition, a primary jetty with a cargo capacity of 120,000-265,000m3 is also being constructed. It will be capable of accepting the newest and largest Q-max vessels and an LNG carrier.

In August 2011, SLNG launched the Secondary Berth Project for the terminal. The project includes construction of a secondary jetty with a cargo capacity of 60,000-265,000m3 and a tertiary jetty with cargo capacity of 10,000-40,000m3.

The two jetties will be constructed on 10ha of land adjacent to the terminal. The secondary jetty includes space for expansion to construct loading arms and associated piping for unloading of LNG. The Secondary Berth Project is expected to be completed by 2013.

PowerGas, along with its partner GDF Suez, did the front-end engineering design for the terminal. The development work was taken up by the government.

LNG terminal EPC contract

The engineering, procurement and construction (EPC) contract for the LNG project was awarded to Samsung C&T in February 2010. The contract was valued at KRW731bn (S$798m). Samsung C&T was also awarded the contract for the third storage tank and the Secondary Berth Project in January 2011 and August 2011, respectively.

Samsung awarded Flour an engineering and related management services contract.

The contract to provide project management consultancy services in support of the development of the terminal was given to Foster Wheeler Asia Pacific.

WorleyParson provided the basis for design and front-end engineering design. The scope of work also included the development of the EPC contractor tender documents along with their subsequent assessment and recommendations for selection.

Singapore LNG supply contract

In 2008, BG Singapore Gas Marketing was selected as LNG aggregator for Singapore. As aggregator, BG will aggregate demand for regasified LNG from all end-users in Singapore and aims at 3mtpa LNG supply starting from 2013.

"The terminal will have three 188,000m³ storage tanks."

With the start of construction, six companies entered into a long-term gas purchase agreement with BG Singapore Gas Marketing.

The companies are Senoko Energy, PowerSeraya, Tuas Power Generation, SembCorp Cogen, Keppel Merlimau Cogen and Island Power Company.

The companies have agreed to purchase 2mtpa of regasified LNG.

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