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LNG Terminal in Singapore

April 1, 2010

Originally published at Energy Market Authority

Singapore, 31 March 2010 – A groundbreaking ceremony was held today for Singapore’s Liquefied Natural Gas (LNG) terminal at Jurong Island. The LNG terminal facility will be Asia’s first open-access multi-user terminal, capable of importing and reexporting LNG from multiple suppliers.

The Guest-of-Honour at the groundbreaking event Mr S. Iswaran, Senior Minister of State for Trade & Industry and Education, described the terminal as one that “will not only help meet Singapore’s growing energy needs, but also catalyse the development of a robust gas market to underpin our industrial growth.” The terminal is expected to be ready for start up by 2013.

Even as construction for the terminal begins, significant progress has been made in the procurement of regasified LNG for domestic needs. Mr S. Iswaran announced that six power companies in Singapore have entered into long-term gas purchase contracts with Singapore’s LNG Aggregator, BG Singapore Gas Marketing Pte. Ltd.

The six companies – Senoko Energy, PowerSeraya, Tuas Power Generation, SembCorp Cogen, Keppel Merlimau Cogen and Island Power Company – have committed to an initial tranche of around 1.5 million tonnes per annum (Mtpa) of regasified LNG. This is about one-quarter of the volume of gas currently being imported by pipelines into Singapore. The actual volume of gas sold in these LNG contracts could increase further if the power companies invest in new generation plants, and need additional gas to fuel these plants.

The LNG terminal at Jurong Island will have an initial capacity of 3.5 million tonnes per annum (Mtpa), with provision for expansion to 6 Mtpa or more, if required. The LNG terminal will be located on an approximately 30-hectare site on the south-western part of Jurong Island. Background information on the LNG project is in the attachment.#


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