Asia/Pacific News
Singapore Plans Second LNG Terminal
Singapore is planning a second liquefied natural gas (LNG) terminal, Bloomberg reports.
"It is signaling a confidence that the government feels it can play a role in the regional LNG market," said Tony Regan, an energy consultant at Tri-Zen International Inc.
"Just talking about it is to capture the attention of the traders and say, look, Singapore's serious."
The new facility could be built as a floating offshore terminal, Chee Hong Tat, CEO of Singapore's Energy Market Authority, said.
Regan said the new project probably won't start operations until 2025 or 2030.
The second terminal could be used for reloading and ship bunkering, according to Leigh Bolton, managing director of Holmwood Consulting Ltd.
"Do they need another terminal only for Singapore trading?" Bolton said.
"I would say probably not because they are already expanding their existing terminal's capacity."
The city-state imported its first LNG cargo at its first terminal on Jurong Island in March 2013, and that terminal has been expanded since then, from a 3 million metric tonne per year (mmtpa) to 6 mmtpa.
It will have a capacity of at least 9 mmtpa by 2017 and could eventually accommodate a total capacity of 15 mmtpa, according to Prime Minister Lee Hsien Loong.
Singapore has been actively seeking to become Asia's hub for LNG trading and bunkering and has been working with other ports to develop infrastructure and standards for use of the fuel.
