Singapore LNG inks deals relating to second terminal
The new floating storage and regasification unit will be built by Korean shipbuilder Hanwha Ocean, and is expected to enter service by the end of the decade
THE Singapore LNG Corporation (SLNG) has inked agreements with Mitsui OSK Lines (MOL), Jurong Port and Wood group in relation with the second Singapore liquefied natural gas (LNG) terminal which will be a floating terminal.
This was announced in an event alongside the Singapore International Energy Week on Wednesday (Oct 23).
“The Second LNG Terminal underscores the continued importance of LNG in Singapore’s energy mix, as well as SLNG’s continual role and responsibility in helping to ensure Singapore’s energy security,” said Leong Wei Hung, CEO at SLNG.
SLNG has inked an agreement with a subsidiary of MOL to charter a new floating storage and regasification unit (FSRU), which will have storage capacity of 200,000 m3 and a regasification capacity of 5 million tonnes per annum (MTPA). The FSRU will be built by Korean shipbuilder Hanwha Ocean, and is expected to enter service by the end of the decade.
The FSRU along with the existing SLNG terminal at Jurong Island will increase the combined LNG throughput of 15 MTPA and provide flexibility in meeting Singapore’s future gas demand.
“That’s the beauty of the FSRU, easy to deploy and easy to do something with it if you don’t need it,” said Leong.
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SLNG has also signed an agreement with Jurong Port to develop the second LNG terminal at Jurong Port, where the FSRU will be berthed. Onshore infrastructure will be developed to connect the FSRU to the gas networks.
Terence Seow, CEO, Jurong Port, said: “Our waterfront infrastructure and proximity to existing gas networks will be helpful to support the operation of the second LNG terminal.”
The front-end engineering design contract has been awarded by SLNG to a subsidiary of Wood to define the scope of onshore connecting infrastructure. The contract will provide the engineering design and scope of works for the engineering, procurement and construction (EPC) contract for the second LNG terminal.
The request for proposal for the EPC contract will follow shortly after the engineering design is completed around mid-2025. The second LNG terminal is expected to be operational by the end of the decade.
“As Singapore continues to prosper, this investment in additional capacity will help ensure the nation is able to capture opportunities and remain on a path of growth, while pursuing its energy transition goals,” said Leong.
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