Singapore to build LNG terminal by early 2009

Jan. 28, 2008
Construction of a planned $1 billion LNG regasification terminal in Singapore is expected to begin by late this year or early 2009.

Eric Watkins
Senior Correspondent

LOS ANGELES, Jan. 28 -- Construction of a planned $1 billion LNG regasification terminal in Singapore is expected to begin by late this year or early 2009 to enable the city-state to begin importing LNG by late 2011-early 2012, according to a senior official (OGJ, Oct. 1, 2007, Newsletter).

S. Iswaran, Minister of State for Trade and Industry, said Singapore needs to move forward with LNG as an important part of its policy to diversify energy sources. Currently, Singapore depends on natural gas piped in from neighboring Malaysia and Indonesia.

Iswaran said PowerGas, the wholly owned subsidiary of Singapore Power, has made good progress toward the construction start and should be able to make some critical decisions shortly.

PowerGas has been identifying core capabilities needed for the expansion, Iswaran added, and they are assessing partnerships to enhance expertise within the consortia in order to develop the terminal.

"After selecting partners and completing the complex design process…they will need to start actual work by the end of this year or early next year," to meet the import target, he said.

Iswaran's remarks came after an announcement by the country's Energy Market Authority that it had short-listed five groups competing to be the sole LNG importer-consortium from a total of 18 proposals involving 22 companies. EMA did not disclose their identities due to requests for confidentiality. Selection is slated for the second quarter.

The market response was promising, Iswaran said, and Singapore had "very strong" proposals from the diverse organizations.

Contact Eric Watkins at [email protected].