Singapore’s second LNG terminal will be an offshore floating storage and regasification unit (FSRU) with a capacity of 5 million metric tons per year. It will be located at Jurong Port and will be operational in 2026. This announcement was made by Minister for Trade and Industry Gan Kim Yong at the Singapore International Energy Week 2024 on October 21, according to S&P Global.
New Terminal
Singapore LNG (SLNG) Corp.’s plan to develop a second LNG terminal to meet the growing demand for natural gas was announced a year ago, but no details had not been decided.
“The new terminal will have 5 million mt/year of throughput capacity, a 50% increase of our existing LNG capacity,” the minister said.
Separately, a senior SLNG executive said the FSRU ship contract had been awarded to Japan’s shipping company Mitsui OSK Lines (MOL), but did not specify the size or duration of the agreement.
Other industry executives said the new FSRU is likely to require an associated long-term LNG contract, as the government is leaning towards locking in baseload supply for a majority of the volume and leaving only a smaller portion for the spot market. The exact duration a long-term contract could vary though, due to broader industry developments. The FSRU will also allow Singapore’ to be flexible in its long-term energy transition and selection of fuel sources, they added.
Minister Gan also provided details about Singapore’s plans to set up a central gas entity, or Gasco, to centralize the procurement and supply of gas to the power sector.
Hydrogen/Ammonia
Gan added the government has shortlisted two consortiums under its ammonia pilot program that will commence preliminary Front-End Engineering Design or FEED studies by the end of 2024.
“This pilot will allow us to gain valuable experience in managing low carbon ammonia supply chains,” he said.
Singapore had released its National Hydrogen Strategy around years ago for the use of hydrogen and in 2023, it had invited consortiums to participate in a Request for Proposal for a pilot project on Jurong Island to explore the use of low carbon ammonia for power generation and maritime bunkering.
The government has also launched the Low Carbon Energy Research (LCER) Funding Initiative and has allocated over S$180 million since 2020 to support research into low-carbon energy technologies, including hydrogen.
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Source: S&P Global
