SINGAPORE (Reuters) -Singapore LNG Corporation (SLNG) has agreed to charter from a unit of Japan’s Mitsui O.S.K. Lines (MOL) a newly built floating storage and regasification unit (FSRU) as the island nation’s second import terminal for liquefied natural gas (LNG).
SLNG, which operates Singapore’s sole LNG terminal, said on Wednesday that the new terminal, or FSRU, was expected to start operations by the end of the decade.
It will be built by South Korean shipbuilder Hanwha Ocean and have a storage capacity of 200,000 cubic meters and a regasification capacity of 5 million tons per annum (mtpa), SLNG said.
MOL said in a separate statement that it would own, manage and operate the FSRU after delivery, which is scheduled for 2027.
Singapore’s current terminal on Jurong Island has an annualised average gas supply capacity of 9 mtpa, with a peak capacity of around 11 mtpa.
The second terminal will be berthed at Jurong Port and infrastructure will be developed to connect the FSRU to onshore pipelines and Singapore’s gas pipeline network, SLNG said.
SLNG had said in October last year that it would develop and operate Singapore’s second LNG import terminal to better enable the country’s natural gas demand to be met entirely by LNG.
(Reporting by Emily Chow; Editing by Savio D’Souza and Mark Potter)
