11 August 2014

These fast-track projects to build up LNG regasification and storage capacity in Singapore are not so much driven by the domestic market demand than to by the opportunity to become Asia regional hub for LNG as it is for crude oil.
Singapore-Second-LNG-Terminal_Project_MapSingapore gas supply is mostly coming from Malaysia and Indonesia through pipelines systems, so that LNG represents only 20% of its gas needs.
Even if its gas supply is well secured by long term contracts, Singapore is willing to play with regional LNG market prices to reduce its own bill.
In addition Asia is becoming the first importer of LNG, ahead of Europe, in concentrating 46% of the global trade.
In this context Singapore intends to take a regional market leadership in storing and trading LNG.
To be installed onshore or on floating facilities offshore the Jurong Island, this second LNG Terminal should have the same size as the first Singapore LNG terminal, but it should have in addition the capability to reload LNG carriers for export in the region.
Already oil and gas companies such as E.ON, Gail, Glencore, Pavilion Energy Qatar Liquefied Gas Co. have mentioned their interest to set local storage and trading capacities in Singapore to support their LNG export.
Currently Singapore LNG is investigating the most convenient location on the east side of the Jurong Island in order to prepare ground for this second Singapore LNG Terminal project that should come on stream by 2025.