Development of Singapore's second LNG facility to begin amid rising energy demand

Natural gas will continue to play crucial role in safeguarding energy security: DPM Gan

- Kang Wan Chern

Development of a second liquefied natural gas (LNG) facility in Singapore will soon begin, with operator Singapore LNG Corporation (SLNG) inking agreements enabling the project to advance to the execution phase.

The move cements the growing use of LNG, or shipped natural gas as opposed to piped natural gas, in Singapore, amid rising demand for electricity to power new homes and support evolving business needs, and facilitates the Republic's push to harness cleaner sources of energy.

At an event to launch the project at the Sands Expo and Convention Centre on Oct 23, SLNG announced agreements with Mitsui O.S.K. Lines (MOL), Jurong Port and engineering company Wood to advance development of the facility.

It will charter from MOL a floating storage and regasification unit (FSRU), which is a type of ship that enables the transport and storage of LNG in tanks on board, as well as the conversion of LNG back into gas that is then piped back onshore.

The FSRU, which will function as SLNG's second LNG terminal, will be constructed by South Korean shipbuilder Hanwha Ocean for an undisclosed amount. It is expected to be operational by the end of the decade.

Together with SLNG's existing terminal on Jurong Island, the FSRU will increase its combined LNG regasification capacity from 10 million tonnes to 15 million tonnes on a yearly basis, the company said.