Second LNG terminal needed to meet trading hub goal [News]
By Conrad Maria Jayaraj, TODAY, 13 Jul 2013.
The Republic may have commenced commercial operations of its S$1.7-billion liquefied natural gas (LNG) terminal only two months ago, but it will need to consider pushing ahead with a second facility if it wants to achieve its goal of becoming a leading trading centre for Asia’s growing LNG market.
Asia is the fastest-growing gas market worldwide and is expected to become the second-largest by 2015, according to an International Energy Agency report.
With demand rising from Japan, South Korea and Taiwan — the backbone of the global LNG market — as well as China and India, an additional facility that could double Singapore’s storage capacity for the fuel would help it fulfil its ambition.
Although a study commissioned by the Energy Market Authority on the feasibility of a second terminal is yet to be completed, a source close to the process is confident that the project will materialise.
“It’s just a matter of identifying a suitable site for the project. We need the second terminal if we seriously want to be Asia’s leading trading hub for LNG,” the source said, adding that an additional terminal with an annual throughput capacity of nine million tonnes could cost US$2 billion (S$2.53 billion).
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