Singapore's first LNG terminal to start operations in Q2 '13

22 October 2012 05:31  [Source: ICIS news]

(recasts paragraph 6 to reflect updated completion date)

SINGAPORE (ICIS)--Singapore's first liquefied natural gas (LNG) terminal is on track to begin operations in the second quarter of next year, a senior government official said on Monday.

"The demand for LNG is already stronger than initially expected.… With the development of the terminal, Singapore will be well-placed to diversify our gas supply and tap on the global LNG market," said S Iswaran, Singapore's second minister for home affairs and trade and industry.

Iswaran was speaking at the Singapore International Energy Week which will run from 22-25 October.

Located on Jurong Island, the city-state's LNG terminal will have a throughput capacity of 3.5m tonnes/year when it is operational, according to Singapore's Energy Market Authority (EMA).

This capacity will increase to 6m tonnes/year by the end of next year when additional jetties and regasification facilities are completed, it said.

The terminal’s third tank is targeted for completion by the end of next year, according to EMA.

Meanwhile, Singapore is considering the introduction of an electricity futures market which will allow independent retailers to participate in the market by purchasing futures contracts, Iswaran told reporters after his speech at the conference.

"We don't have a specific timeline at the moment [to implement the futures market]… but clearly this is an initiative that we will like to move on as soon as possible," he said.

Singapore will also launch a consultation process to incorporate "demand response" as part of the national electricity market.

Demand response will allow consumers to participate actively in the market by curtailing their demand in response to high prices, according to Iswaran.

"This can moderate price spikes, lower energy costs, and generate system-wide savings," he said.

"Large consumers in the industry space such as electronics and the petrochemicals and chemicals sector... for whom energy is a significant proportion of their business operating costs will stand to gain [from the demand response initiative]," Iswaran added.

By: Nurluqman Suratman

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