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Consortium led by Keppel Infrastructure unit bags S$52.5m Jurong Island pipelines project

JTC Corporation has awarded a S$52.5 million contract to a consortium consisting of Keppel Corp's unit Keppel Infrastructure Holdings and Asia Projects Engineering for a Jurong Island pipelines project, following an open tender.

Led by energy solutions provider Keppel Infrastructure through its subsidiary Pipenet, the consortium is tasked with designing and building two 48 inch crude oil pipelines and ancillary facilities along parts of Banyan Drive, Banyan Avenue and the Jurong Island Highway, Keppel Corp said on Tuesday in a regulatory filing.

This will facilitate pipeline connection to the Jurong Rock Caverns on Singapore's Jurong Island, which will help facilitate the transportation of crude oil between Jurong Rock Caverns and its users.

The project is marked for completion by end 2020 and is not expected to have any material impact on the earnings per share and net tangible asset per share of Keppel Corp for fiscal 2019, the group added.

The win builds on another contract awarded by JTC to Pipenet earlier this year to design, build and operate pipe racks on Jurong Island facilitating pipeline connection to the Jurong Rock Caverns. The group added that construction of the pipe racks is already underway and scheduled to be completed in early 2020. This will allow for the efficient and timely execution of the latest pipelines project.

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Pipenet owns and operates a pipeline corridor network with a majority stretch along Jurong Island Highway. The corridor connects the Merbau region to the Banyan and Tembusu regions on Jurong Island, and also runs through the chemical cluster at the Sakra region.

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