(EnergyAsia, August 10 2011, Wednesday) — Singapore LNG Corp Pte Ltd (SLNG) said it has awarded two separate contracts for a engineering, procurement, and construction (EPC) project, and provision of business process services for its S$1.7 billion liquefied natural gas (LNG) terminal now under construction on Jurong Island. (US$1=S$1.22).

South Korea’s Samsung C&T Corp beat out three companies for the EPC contract to develop the terminal’s US$165-million secondary berth that will enhance the terminal’s potential to develop other services.

To be sited on approximately 10 hectares of reclaimed land, the berth comprises a secondary jetty to handle LNG ships with a cargo capacity ranging from 60,000 to 265,000 cubic metres, and a tertiary jetty marine sub-structure for the future use of smaller LNG ships and barges with cargo capacity ranging from 10,000 to 40,000 cubic metres.

The two new jetties are an addition to the primary jetty for cargo capacity of 120,000 to 265,000 cubic metres which is being constructed by Samsung C&T Corporation as part of the main EPC contract for the LNG terminal due to start up by the second quarter of 2013.

SLNG said the secondary jetty has space to provide for the future installation of loading arms and associated piping for the unloading of refrigerated liquefied petroleum gas (LPG) ships with cargo capacity range of 60,000 to 80,000 cubic metres. This will facilitate the future import of LPG as a naphtha substitute if required by Singapore’s four ethylene crackers.

To be completed by December 2013, the new jetty will also enable traders to ‘break bulk’ LNG shipments by importing large cargoes and reloading them onto smaller ships for re-distribution to other markets in the region.

For the bunkering fuel business, the jetty opens up the intriguing possibility of the use of LNG as a shipping fuel.
Neil McGregor, SLNG’s CEO, said:

“The project adds flexibility and value to the range of LNG terminal services that SLNG can offer its customers in Singapore and regionally. This is consistent with our goal of becoming a gas hub for the region. We have a masterplan with built-in options to the LNG terminal that will facilitate the majority of LNG market scenarios that are likely to develop in the region.”

Chee Hong Tat, chief executive of the state agency Energy Market Authority (EMA), said:

“With its additional berthing capacity, the secondary jetty will improve the resilience of the LNG terminal and enable Singapore to import more LNG when required. This will add to EMA’s efforts to enhance Singapore’s energy security and diversify our natural gas supplies.”

SLNG Corp said four companies submitted “novel” designs” in the keenly-contested open tender. It awarded the contract to Samsung C&T for an undisclosed sum.

Paul Shin, Vice President and Head of South East Asia of Samsung C&T Corp, said:

“Our success in this tender demonstrates Samsung’s continued commitment to making Singapore’s LNG terminal a reality. We are confident of delivering both the LNG Terminal and secondary berth projects safely and within schedule.”

Invensys, R2E to provide business processes services

Earlier, SLNG Corp awarded a business process consultancy services contract to Invensys Operations Management, a global provider of technology systems, software solutions and consulting services to the manufacturing and infrastructure operations industries, and Resources2 Energy (R2E), a Houston, Texas management consulting firm with expertise in dedicated LNG terminal operations.

Invensys said it and R2E will work jointly with SLNG to develop and implement a range of business processes to manage the commercial, technical interfacing and business support functions of the LNG terminal, which will have a throughput capacity of up to six million tonnes per year.

Mr McGregor said: “It is imperative that we develop an intelligent terminal, making the maximum use of business systems and IT applications to achieve operational excellence. Invensys and R2E have since embarked on Phase 1 of the business process consultancy and work has been progressing well. SLNG is confident that in Invensys and R2E we have consultants with the necessary skills and experience to make this a reality.”

Ravi Gopinath, President of Invensys Operations Management (Asia Pacific), said:

“Our unique business process consulting services and local presence, together with R2E’s expertise in LNG terminal operations, will allow SLNG to achieve real-time operational excellence and brings exceptional value. It will contribute toward SLNG’s long-term goal of being the gas hub for the region.”

Darrell Rangnow, a Resources2 Energy partner, said:

“R2E and Invensys have a long history of collaborating in the LNG sector. Our extensive industry experience, combined with Invensys Operations Management’s domain knowledge and project management expertise, allows us to provide comprehensive business process and IT solutions that will enable SLNG to build and operate a safe, reliable and efficient terminal.”

Invensys Operations Management, the Plano-based, Texas division of UK’s Invensys is a leading provider of automation and information technology, systems, software solutions, services and consulting to the global manufacturing and infrastructure industries.

Singapore LNG Corp is a company incorporated by the Energy Market Authority to own and develop the country’s first LNG import terminal.