Photo: Image courtesy of Singapore LNG Corporation

SLNG tests the market demand for fifth LNG storage tank

SLNG tests the market demand for fifth LNG storage tank
Image courtesy of Singapore LNG Corporation

SLNG, the owner and operator of Singapore’s liquefied natural gas terminal, is seeking non-binding expressions of interest for the use of a new, fifth LNG storage tank. 

Currently, four storage tanks are in operations, and in its document, SLNG notes that the terminal on Jurong Island with an annualized average throughput capacity of 9 mtpa is a key element of Singapore’s energy diversification strategy.

To facilitate the growth of Singapore as an LNG trading hub and the growth of the LNG business in Singapore, SLNG will be able to construct another LNG storage tank at the terminal and is keen to explore interest in the market to underpin this facility, the document reads.

The EOI should contain an indicative price offer in USD and a proposal for how the tank could be used, and SLNG’s preferred terms will form the key basis for considering any proposal.

However, SLNG is also open to considering alternative proposals and different structures, so long as they meet SLNG’s objectives.

Successful bidders will be invited to participate in a full request for proposal (RFP) to be issued by SLNG at a later date.

The company noted in its terms that it is looking for a 180,000-cbm to 260,000-cbm with a 15-year term and a potential commencement date around 2022 or 2023.

SLNG will procure, build, own and operate the tank at SLNG’s cost and risk. The contracting party will enter into a lease agreement with SLNG, in the form of our standard terminal use agreement, which commercial terms shall be negotiated and will be subject to approval from the authority.