Singapore is strengthening its liquefied natural gas (LNG) import capacity with the opening of its second terminal, with a capacity of 5 million tonnes per year. Located at Jurong Port, this terminal is based on a floating storage and regasification unit (FSRU), according to Minister for Trade and Industry Gan Kim Yong during the Singapore International Energy Week 2024 on October 21.
The use of a floating storage and regasification unit (FSRU) provides increased flexibility, allowing the facility to be moved according to demand needs while requiring less land space compared to traditional infrastructure. Additionally, FSRU-based terminals are generally less expensive and faster to build than their land-based counterparts.
The project to develop this second LNG terminal by Singapore LNG (SLNG) Corp. was announced a year ago, but no details had been specified until now. “The new terminal will have a processing capacity of 5 million tonnes per year, an increase of 50% of our current LNG capacity,” Minister Gan said.
FSRU Contract and International Partnerships
Separately, a senior SLNG executive announced that the contract for the FSRU vessel had been awarded to Mitsui OSK Lines (MOL), a Japanese shipping company. Details regarding the size or duration of the deal were not disclosed. Other industry executives have indicated that the new FSRU will likely require a long-term LNG contract, given that the government favors baseload supply for the majority of the volume, reserving a smaller portion for the spot market. The exact duration of this long-term contract could vary depending on broader industry developments.
Flexibility and Energy Transition
Installing an FSRU also allows Singapore to remain flexible in its long-term energy transition and choice of fuel sources. This flexibility is crucial for adapting the country's energy strategy to rapid changes in the global energy market and sustainability requirements.
Meanwhile, Minister Gan announced Singapore's plans to establish a central gas entity, or Gasco, which will centralize the supply and distribution of gas to the energy sector. “We will establish Gasco as a fully government-owned company by the end of the financial year,” he explained. “This approach will allow us to negotiate more favorable gas contract terms, enter into long-term contracts for more stable prices and supply, and source gas from diversified sources to reduce concentration risk. . »
Ammonia and Hydrogen Initiatives
Minister Gan also provided details on Singapore's ammonia initiatives. Two consortia have been shortlisted under the ammonia pilot program, which will begin preliminary front-end engineering design (FEED) studies by the end of 2024. “This pilot will allow us to gain experience valuable in managing low-carbon ammonia supply chains,” he added.
Singapore unveiled its National Hydrogen Strategy a few years ago and, in 2023, invited consortia to participate in a request for proposal for a pilot project on Jurong Island to explore the use of hydrogen. low-carbon ammonia for power generation and maritime fueling.
The government also launched the Low Carbon Energy Research (LCER) Funding Initiative, allocating over S$180 million since 2020 to support research into low-carbon energy technologies. , including hydrogen. In 2024, the Center for Hydrogen Innovations was launched at the National University of Singapore (NUS), the first of its kind in Southeast Asia, aiming to advance hydrogen research across the value chain.
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