Singapore plans to construct a second LNG terminal, part of its long-term strategy to become Asia’s LNG trading hub. Singapore’s first LNG terminal, with a capacity of 3.5 mtpa, commenced operations in March 2013. The project, located on Jurong Island, is owned and operated by Singapore LNG Corporation Private Limited. A third tank and additional regasification facilities have now been completed, thereby increasing the throughput capacity of the terminal to 6 mtpa. Further, as part of Phase III, a fourth tank and more facilities will be added by 2017, which is expected to take the terminal’s capacity to at least 9 mtpa. In 2008, UK-based BG Group secured a contract to supply 3 mtpa of LNG to Singapore for a period of 10 years, beginning 2013. A second licence to supply Singapore with 1 million tonnes through 2018 will be awarded by the energy regulator, the Energy Market Authority. At present, Singapore generates more than 90 per cent of its overall electricity generation, using natural gas. LNG meets about 20 per cent of the country’s natural gas needs. The remainder is supplied by four pipelines from Malaysia and Indonesia.
