by mevotex » Sat Nov 03, 2012 11:19 am
Being an island nation with almost no natural resource, Singapore is dependent on Malaysia for water supply and Indonesia for natural gas to generate electricity. In 2003, Malaysia under Mahathir administration threatened to raise the water prices by 200 times from 3 sen per 1,000 gallons to RM6.25, a critical event that forced Singapore to seek water-sufficiency on its own.
Singapore's water sufficiency to top 70% next year
After some efforts, the city-state is now 60% sufficient in water (to be risen to 70% in 2013), and is on track to achieve full sufficiency prior to the expiration of the second water treaty with Malaysia in 2061. In the process it also built a $9 billion dollar water technologies industry that is now globally recognized.
In 2011, Indonesia’s top economic minister Hatta Rajasa urged the government to cut excessive natural gas shipments to Singapore and demanded to set up a legal team to renegotiate all gas sales contracts with Singapore. The city-state uses natural gas to generate 80% of its electricity, with the bulk of the supplies coming from Indonesia.
The two countries have signed two long-term gas contracts, which Indonesia will supply 790 million cubic feet of piped natural gas to Singapore everyday. The first deal was signed in 1999 for a 22-year term, while the second was signed in 2001 for a 20-year tenure. Both treaties will expire in 2021.
Gas power plant in Singapore: the city-state is dependent on Indonesian natural gas supply
Singapore's solution to Malaysian water threat was to gather the world's water management scientists who later identified desalination and recycled water as practical means to meet its sufficiency goal, by which relevant facilities were then built and the government injecting million of dollars every year targeting the research and development (R&D) for both.
And the solution to Indonesian gas threat? Make Singapore a global LNG trading hub.
Singapore is already one of the world's leading oil hub. It is the world's fourth largest oil trading center after Geneva, London and a combined New York and Houston (USA). Everyday 15% of the world’s physical crude oil is traded through Singapore, and for a nation without a single drop of the black gold, oil managed to account for 5% of Singaporean GDP.
Now it wants to become a gas (LNG) hub.
Singapore's new LNG transhipment terminal is 95% completed
The wealthy Southeast Asian state is poised for a new chapter in energy security when the liquefied natural gas (LNG) terminal on Jurong Island opens in the second quarter of next year. The $1.7 billion terminal will allow Singapore to import LNG from all over the world for domestic use. This mean the island will have access to plentiful gas supplies across the globe.
At the moment, Singapore's gas is imported from Malaysia and especially Indonesia through pipe. Piped gas is transported in gaseous state, requiring specially built pipelines. In contrast, LNG is gas cooled at -160 deg Celsius into liquid form. It is thus much easier to store and transport. But importers need to build a special terminal to handle LNG.
LNG terminal is expensive, require sophisticated engineering and take up a large amount of lands which Singapore lacks. The lion city had all along consider it more cost-effective to just import piped gas from its neighbors, even though Singapore pays a 15% premium to the spot prices for Malaysian and Indonesian gas. This make Singaporean electricity twice as expensive as that in Malaysia.
Singapore: By 2013, we may wipe off 30% of our dependence on Indonesian/Malaysian gas, 100% by 2017
But with the soaring gas prices in 2006, Singapore began to take a serious look into the terminal. It took four years before Singapore could acquire the necessary expertise and skilled workforce to proceed with the construction. And it wasn't an ordinary terminal Singapore wants to build, it would be the first of its kind in the world to be specifically designed for both the import and export of LNG. As of now, LNG terminals only handle either imports or exports.
With a terminal that can handle imports, and re-exports, Singapore thus stands a good chance of becoming an LNG trans-shipment and trading hub, in the same way it is already an oil hub. Ships carrying LNG from supplier countries can dock at the new Jurong terminal. The LNG can then be reprocessed and re-exported to Asian countries where demand is raging. If realized, it would be two birds one stone for Singapore; meeting its own gas demand and also becoming an international gas trading hub.
A report from Reuters says that Singapore’s planned LNG terminal will be able to handle sufficient imports of fuel to fulfill all the country’s power generation needs, even if piped gas supply contracts with Indonesia and Malaysia are not renewed.
Can the island with no gas become an LNG trading hub, just like it did for oil?
The Singapore LNG Corporation (SLNG), incorporated in 2009, was commissioned for the job. SLNG chief executive Neil McGregor said that when the terminal begins operating by next year, LNG could meet account for 30% of Singapore’s gas demand, thereby starting the path to end the reliance on Indonesian gas and enhance the country’s energy security.
Already the city-state is attempting to attract global LNG trading houses by setting a low 5% concessionary corporate tax rate for LNG trading income. Five years ago, there were no significant LNG players in Singapore. Now, there are 14 companies with significant LNG trading or marketing desks here, said trade promotion agency IE Singapore's chief executive Teo Eng Cheong.
Singapore officials have previously said the new terminal was designed to supplement piped gas. Chee Hong Tat, chief executive of Singapore’s Energy Market Authority, when interviewed, declined to say what would happen when the piped gas contracts end. Singapore did not renew its first water treaty with Malaysia when it expired on 2011.
The government of Singapore invested $500 million into the Cheniere Energy LNG export plant in the U.S., American shale gas boom means the U.S. can export cheap LNG to Asia as early as 2015
The country will use the LNG terminal to diversify its own energy mix, S. Iswaran, Singapore's second minister for home affairs and trade and industry, told reporters at an energy conference. "Our objective is really to further prepare for a future with more LNG as part of Singapore's energy mix," Mr. Iswaran said. This would also bring down electricity costs, giving Singaporean industries a much-needed relief.
The terminal's expansion will "catalyze business opportunities such as LNG trading, break-bulk services and LNG bunkering" and "further spur the growth of such LNG-related businesses," Mr. Iswaran said. When asked if Singapore would consider building a second LNG terminal, Mr. Iswaran said the government "will not rule out any options." He noted that more could be done at the site of the current terminal and said the government would closely monitor market conditions to determine whether additional infrastructure is needed.
Some analysts however, doubted Singapore's transhipment hub ambition. "Land-scarce Singapore cannot afford to have many terminals, and bunkering activities may have to be done somewhere else if it proliferates in the future," Lee Seng Wai, head of LNG Project at the Energy Market Authority, said.
Turning towards the Down Under: Australia is expected to replace Qatar as the world's no.1 LNG exporter in 2020
"Energy Market Authority is supportive of LNG bunkering opportunities, however SLNG's first priority is to meet domestic demand," Lee added. "Singapore itself will consume 8 million-9 million tons of LNG, (and if it wants to be an Asian hub) 20% of Asia's bunker demand on LNG would mean that 20 million-25 million tons is needed," he added.
The first phase of the terminal is expected to become operational in next year with two storage tanks and a capacity of 3.5 million tons. It will have a total capacity of 6 million tons when a third storage tank is completed in the first quarter of 2014. Singapore will invest $500 million to add a fourth storage tank by 2017, taking capacity to 9 million tons. The country is studying plans to build a fifth tank for the yet-to-be-completed Jurong Island terminal, which can accommodate six tanks.
Singapore is currently the world's third largest oil refining center. It is yet to be seen whether it will achieve similar successes on LNG refining. Neighboring Malaysia and Indonesia are among the world's largest LNG exporters.
Resource security: Can Singapore finally free itself from the claws of Malaysia and Indonesia?
Source:
http://finance.yahoo.com/news/singapore ... 47171.html
http://www.lngworldnews.com/slng-ceo-sa ... singapore/
http://www.petroleum-economist.com/Arti ... G-hub.html
http://energyasia.com/public-stories/si ... -lng-tank/
http://www.thejakartapost.com/news/2012 ... migas.html
http://af.reuters.com/article/commoditi ... Q020121024
http://www.platts.com/RSSFeedDetailedNe ... ng/8209737
http://www.downstreamtoday.com/news/art ... eSupport=1
http://online.wsj.com/article/SB1000142 ... 31482.html
Link: http://miricommunity.net/viewtopic.php?f=1&t=56737
Being an island nation with almost no natural resource, Singapore is dependent on Malaysia for water supply and Indonesia for natural gas to generate electricity. In 2003, Malaysia under Mahathir administration threatened to raise the water prices by 200 times from 3 sen per 1,000 gallons to RM6.25, a critical event that forced Singapore to seek water-sufficiency on its own.
Singapore's water sufficiency to top 70% next year
After some efforts, the city-state is now 60% sufficient in water (to be risen to 70% in 2013), and is on track to achieve full sufficiency prior to the expiration of the second water treaty with Malaysia in 2061. In the process it also built a $9 billion dollar water technologies industry that is now globally recognized.
In 2011, Indonesia’s top economic minister Hatta Rajasa urged the government to cut excessive natural gas shipments to Singapore and demanded to set up a legal team to renegotiate all gas sales contracts with Singapore. The city-state uses natural gas to generate 80% of its electricity, with the bulk of the supplies coming from Indonesia.
The two countries have signed two long-term gas contracts, which Indonesia will supply 790 million cubic feet of piped natural gas to Singapore everyday. The first deal was signed in 1999 for a 22-year term, while the second was signed in 2001 for a 20-year tenure. Both treaties will expire in 2021.
Gas power plant in Singapore: the city-state is dependent on Indonesian natural gas supply
Singapore's solution to Malaysian water threat was to gather the world's water management scientists who later identified desalination and recycled water as practical means to meet its sufficiency goal, by which relevant facilities were then built and the government injecting million of dollars every year targeting the research and development (R&D) for both.
And the solution to Indonesian gas threat? Make Singapore a global LNG trading hub.
Singapore is already one of the world's leading oil hub. It is the world's fourth largest oil trading center after Geneva, London and a combined New York and Houston (USA). Everyday 15% of the world’s physical crude oil is traded through Singapore, and for a nation without a single drop of the black gold, oil managed to account for 5% of Singaporean GDP.
Now it wants to become a gas (LNG) hub.
Singapore's new LNG transhipment terminal is 95% completed
The wealthy Southeast Asian state is poised for a new chapter in energy security when the liquefied natural gas (LNG) terminal on Jurong Island opens in the second quarter of next year. The $1.7 billion terminal will allow Singapore to import LNG from all over the world for domestic use. This mean the island will have access to plentiful gas supplies across the globe.
At the moment, Singapore's gas is imported from Malaysia and especially Indonesia through pipe. Piped gas is transported in gaseous state, requiring specially built pipelines. In contrast, LNG is gas cooled at -160 deg Celsius into liquid form. It is thus much easier to store and transport. But importers need to build a special terminal to handle LNG.
LNG terminal is expensive, require sophisticated engineering and take up a large amount of lands which Singapore lacks. The lion city had all along consider it more cost-effective to just import piped gas from its neighbors, even though Singapore pays a 15% premium to the spot prices for Malaysian and Indonesian gas. This make Singaporean electricity twice as expensive as that in Malaysia.
Singapore: By 2013, we may wipe off 30% of our dependence on Indonesian/Malaysian gas, 100% by 2017
But with the soaring gas prices in 2006, Singapore began to take a serious look into the terminal. It took four years before Singapore could acquire the necessary expertise and skilled workforce to proceed with the construction. And it wasn't an ordinary terminal Singapore wants to build, it would be the first of its kind in the world to be specifically designed for both the import and export of LNG. As of now, LNG terminals only handle either imports or exports.
With a terminal that can handle imports, and re-exports, Singapore thus stands a good chance of becoming an LNG trans-shipment and trading hub, in the same way it is already an oil hub. Ships carrying LNG from supplier countries can dock at the new Jurong terminal. The LNG can then be reprocessed and re-exported to Asian countries where demand is raging. If realized, it would be two birds one stone for Singapore; meeting its own gas demand and also becoming an international gas trading hub.
A report from Reuters says that Singapore’s planned LNG terminal will be able to handle sufficient imports of fuel to fulfill all the country’s power generation needs, even if piped gas supply contracts with Indonesia and Malaysia are not renewed.
Can the island with no gas become an LNG trading hub, just like it did for oil?
The Singapore LNG Corporation (SLNG), incorporated in 2009, was commissioned for the job. SLNG chief executive Neil McGregor said that when the terminal begins operating by next year, LNG could meet account for 30% of Singapore’s gas demand, thereby starting the path to end the reliance on Indonesian gas and enhance the country’s energy security.
Already the city-state is attempting to attract global LNG trading houses by setting a low 5% concessionary corporate tax rate for LNG trading income. Five years ago, there were no significant LNG players in Singapore. Now, there are 14 companies with significant LNG trading or marketing desks here, said trade promotion agency IE Singapore's chief executive Teo Eng Cheong.
Singapore officials have previously said the new terminal was designed to supplement piped gas. Chee Hong Tat, chief executive of Singapore’s Energy Market Authority, when interviewed, declined to say what would happen when the piped gas contracts end. Singapore did not renew its first water treaty with Malaysia when it expired on 2011.
The government of Singapore invested $500 million into the Cheniere Energy LNG export plant in the U.S., American shale gas boom means the U.S. can export cheap LNG to Asia as early as 2015
The country will use the LNG terminal to diversify its own energy mix, S. Iswaran, Singapore's second minister for home affairs and trade and industry, told reporters at an energy conference. "Our objective is really to further prepare for a future with more LNG as part of Singapore's energy mix," Mr. Iswaran said. This would also bring down electricity costs, giving Singaporean industries a much-needed relief.
The terminal's expansion will "catalyze business opportunities such as LNG trading, break-bulk services and LNG bunkering" and "further spur the growth of such LNG-related businesses," Mr. Iswaran said. When asked if Singapore would consider building a second LNG terminal, Mr. Iswaran said the government "will not rule out any options." He noted that more could be done at the site of the current terminal and said the government would closely monitor market conditions to determine whether additional infrastructure is needed.
Some analysts however, doubted Singapore's transhipment hub ambition. "Land-scarce Singapore cannot afford to have many terminals, and bunkering activities may have to be done somewhere else if it proliferates in the future," Lee Seng Wai, head of LNG Project at the Energy Market Authority, said.
Turning towards the Down Under: Australia is expected to replace Qatar as the world's no.1 LNG exporter in 2020
"Energy Market Authority is supportive of LNG bunkering opportunities, however SLNG's first priority is to meet domestic demand," Lee added. "Singapore itself will consume 8 million-9 million tons of LNG, (and if it wants to be an Asian hub) 20% of Asia's bunker demand on LNG would mean that 20 million-25 million tons is needed," he added.
The first phase of the terminal is expected to become operational in next year with two storage tanks and a capacity of 3.5 million tons. It will have a total capacity of 6 million tons when a third storage tank is completed in the first quarter of 2014. Singapore will invest $500 million to add a fourth storage tank by 2017, taking capacity to 9 million tons. The country is studying plans to build a fifth tank for the yet-to-be-completed Jurong Island terminal, which can accommodate six tanks.
Singapore is currently the world's third largest oil refining center. It is yet to be seen whether it will achieve similar successes on LNG refining. Neighboring Malaysia and Indonesia are among the world's largest LNG exporters.
Resource security: Can Singapore finally free itself from the claws of Malaysia and Indonesia?
Source:
http://finance.yahoo.com/news/singapore ... 47171.html
http://www.lngworldnews.com/slng-ceo-sa ... singapore/
http://www.petroleum-economist.com/Arti ... G-hub.html
http://energyasia.com/public-stories/si ... -lng-tank/
http://www.thejakartapost.com/news/2012 ... migas.html
http://af.reuters.com/article/commoditi ... Q020121024
http://www.platts.com/RSSFeedDetailedNe ... ng/8209737
http://www.downstreamtoday.com/news/art ... eSupport=1
http://online.wsj.com/article/SB1000142 ... 31482.html
Link: http://miricommunity.net/viewtopic.php?f=1&t=56737
