'Paranoid' Singapore moves to boost energy security, FSRU under consideration

Singapore LNG (SLNG) has been given the green light from the host government to develop its second liquefied natural gas import facility, with a floating storage and regasification unit being evaluated to complement its existing onshore terminal in Singapore.

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The potential FSRU-based LNG import scheme will have capacity of up to 5 million tonnes per annum, approximately half that of the current SLNG import facility.

SLNG had earlier advised it would “shortly” launch a tender to charter an FSRU, confirming what industry sources had told Upstream's sister publications Tradewinds at the Gastech conference in Singapore this September, with the aim of having the facility in operation by the end of this decade.

However, it now seems that a second onshore LNG import terminal remains under consideration.

An FSRU, should this concept be selected, would be connected to Singapore’s gas pipeline grid via an onshore gas pipeline to be installed as part of the project.

Confirming Singapore's planned second LNG import facility, Deputy Prime Minister Lawrence Wong told attendees at SLNG's 10th anniversary dinner held on Tuesday evening on the sidelines of SIEW 2023, that the city state was "paranoid" about its energy security.

However, he followed that up by saying it was the government's belief that only the paranoid survive.

This paranoia — which was exacerbated by the global energy crisis after Russia invaded Ukraine last year — led Singapore to line up two FSRUs on spot charters in case extra volumes of LNG were required, Upstream understands.

Wong noted that although SLNG's existing onshore LNG terminal is currently only operating at around 60% of its capacity, last year's market uncertainty was sufficient to spur SLNG towards a second import project.

The deputy prime minister clarified that details and the proposed concept of this project remain to be ironed out, while SLNG on Wednesday added that further information would be shared at an opportune time.

Also, Wong said it has yet to be determined where a potential FSRU would be moored, not least because of the premium price for waterfront land in Singapore. One option on the table, at least initially, would be to deploy a floater in deeper waters off Jurong port.

‘Trading hub for LNG’

SLNG noted that its second LNG import facility would better enable Singapore’s demand for natural gas to be met entirely by LNG, should that become necessary — the nation also receives pipeline gas imports from Indonesia and Malaysia — and would enhance its “capacity to deliver more LNG-related services, further entrenching Singapore as a key trading hub for LNG”.

“I am delighted and proud that SLNG has been given the approval to develop this strategically important project, which will considerably enhance Singapore’s energy security. This is a momentous milestone for SLNG as the approval came at a time when we are celebrating our 10th anniversary,” said SLNG chief executive Tan Soo Koong.

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“It is a testimony that we have done our core job well over the past 10 years and reinforces the important role that SLNG will continue to play in Singapore’s energy security in the next decade and more.”

Since commencing commercial operations on 7 May 2013, SLNG said it has grown “from strength to strength in its business and operational excellence, maintaining a high standard of safety and reliability over the years”.

As of the end of September, the SLNG LNG import terminal on Singapore’s Jurong Island has received some 430 cargoes, totalling around 1399.8 trillion British thermal units or approximately 26.58 million tonnes.

The terminal has also received almost 190 ships for its storage and reload, and LNG bunkering services; and 130 vessels for its gassing-up and cool-down service. Additionally, the terminal has conducted 18 LNG transhipment and more than 3730 LNG truck loading operations.

Updated again to include further clarifications from SLNG.