The prospects of liquefied natural gas (LNG) in Singapore
Tay, Freddie Kai Xu
Date of Issue2015
School of Civil and Environmental Engineering
Singapore, known for its political stability and maritime hub, has decided to import Liquefied Natural Gas (LNG) to be less dependent on her neighbours for energy. There are also plans to become a regional LNG hub, which promotes gas trading and LNG bunkering. As such, Singapore LNG Corporation Pte. Ltd. (SLNG) was set up as a regasification terminal to feed gas into Singapore’s power grid. Concurrently, Pavilion Energy and major trading companies have been lured to set up trading desks in Singapore. The world has become more concerned about global warming and greenhouse gases which prompted nations to review their current energy usage patterns. Although renewable energy and nuclear power are the cleanest in terms of emissions, natural gas is still the best candidate for cleaner energy production; it is abundant, safe, reliable with current technologies, and produces almost zero greenhouse gases. Furthermore, America has created a large supply of gas through shale gas technology, which are being implemented globally. Cost of production will drop, and the market will see a use of more efficient market tools to price these gases gradually. Natural gas and oil prices are expected to narrow, as current oil prices are deemed unsustainable in the medium to long term. This will make energy switch easier to decide in the future. Singapore has the potential to become a regional market leader in this new market with her current economic set up. Outlook on the region in the medium to long term is strong. Growing economies are expected to depend more on gas imports, through LNG, to support their energy demands. Singapore could act as a hub and provide break-bulked services to islands in the region, while supplying LNG as a marine fuel to an increasingly environment-conscious shipping community. Though competition is increasing within the region, Singapore is in an advantageous position from a business and supply chain point of view. The announced interest in developing an Asian natural gas reference spot price, and the Maritime and Port Authority of Singapore’s LNG bunkering pilot programme demonstrates Singapore’s commitment to this market. This will give the industry confidence in her system, which will aid in her development towards a regional LNG hub. Hence, this research believes that the prospects of LNG in Singapore is bright given current developments.
DRNTU::Engineering::Maritime studies::Maritime management and business
Final Year Project (FYP)
Nanyang Technological University