Singapore takes over terminal

SINGAPORE’S government has taken over development and ownership of the country’s first LNG import terminal.

A new company called Singapore LNG will be set up by the Energy Market Authority. S Iswaran, senior minister of state for trade and industry, blamed the recession for the government’s move to take control of the scheme.

The government is keen to complete the terminal and start operating by 2013. A contract for detailed engineering, procurement and construction will be awarded by the end of this year.

About 3M tonnes of LNG a year will be imported. At present, natural gas is transported into Singapore by pipeline from fields in Malaysia and Indonesia.

Iswaran, told IHS Global Insight that Powergas, a wholly owned subsidiary of Singapore Power, had been designated as the terminal’s owner-operator in September 2007.

Powergas and partner GDF Suez have completed the terminal’s front-end engineering and design work and acquired land for it. But the recession has prevented the companies from proceeding further, the report explained.

Global Insight pointed out: “It is unclear whether this [Singapore LNG] will be fully or partially owned by the government”.

It added: “The terminal already has a supply agreement signed in April 2008 from BG Group's proposed liquefaction terminal in Queensland, Australia, which is due to come onstream by 2014.”

Estimated investment for the terminal would be $1-$1.5Bn, Global Insight commented, adding: “The government's takeover reflects the growing uncertainty over future LNG demand in the Asia-Pacific region from project partners.”

SINGAPORE’S government has taken over development and ownership of the country’s first LNG import terminal.

(Source: Fairplay)