You are here

Samsung nets USD 560m Singapore LNG terminal EPC contract

28th August 2014

Singapore LNG Corporation (SLNG) has awarded the engineering, procurement and construction (EPC) contract for Phase 3 expansion of the Singapore LNG Terminal to Samsung C&T Corporation

Samsung nets USD 560m Singapore LNG terminal EPC contract
At 260,000 cubic metres, the new fourth LNG storage tank will be the largest in the world, and able to receive a full cargo load from a Q-Max carrier (which is currently the largest LNG carrier in the world)

The EPC contract is valued at some USD 560m, and involves the further expansion of the terminal to include a fourth liquefied natural gas (LNG) storage tank and additional regasification facilities to bring the terminal’s send-out capacity from the current 6 million tonnes per annum (Mtpa) to around 11 Mtpa.

"With this Phase 3 development, we are not just further enhancing energy security and boosting our ability to ensure undisrupted gas send-out to meet increasing domestic demand; we are also turning the next page of the Singapore LNG story, as we build up the terminal’s capacity to allow Singapore to respond to new business opportunities in the regional or global LNG markets,” said John Ng, chief executive officer of SLNG.

At 260,000 cubic metres, the new fourth LNG storage tank will be the largest in the world, and able to receive a full cargo load from a Q-Max carrier (which is currently the largest LNG carrier in the world).

Other key facilities to be added include a new terminal substation, additional open rack vapourisers (ORVs) and LNG booster pumps, and equipment to allow the correction of Wobbe Index of regasified LNG, where necessary, to meet Singapore’s gas specifications.

 “Samsung C&T was awarded the contract following a very rigorous tender and evaluation process, based on the merits of their technical and commercial offer. We worked with Samsung in the earlier phases of construction of the terminal, and they have proven to be a very professional and reliable partner. We are happy to be able to continue this partnership and we are confident that they will be able to deliver the same quality and reliability in the Phase 3 project.”

The contract was signed on 26 August 2014.

Construction of Phase 3 is scheduled to begin by end 2014. The regasification facilities are expected to be completed by 2017, while the fourth tank is expected to be completed by 2018. The terminal’s design also makes provisions for a possible future Phase 4 expansion, which may be considered at a later stage should the demand support the investment.

“We are very pleased and honoured to be awarded the Phase 3 Expansion and be able to further contribute to the transformation of Singapore’s LNG industry,” said Choi Chi Hun, president and CEO of Samsung C&T Corporation. “With our top priorities on safety and quality, we remain fully committed to deliver another successful project for SLNG and Samsung C&T Corporation.”

The Singapore LNG Terminal began operations in May 2013 with two storage tanks and an initial throughput capacity of 3.5 Mtpa. A third tank and additional regasification facilities were completed in January 2014, increasing the throughput capacity of the terminal to 6 Mtpa, and a Secondary Jetty was added to the operations in March 2014.

To date, the Terminal has received 32 LNG vessels delivering more than 108 million mmBtu (Million British Thermal Unit), or about 2.06 million metric tonnes, of LNG to Singapore.

Related topics: 

Asia

Oil and gas industry news from Asia

LNG

Got a news tip? Email news@oilandgastechnology.net