Regional LNG: CNG can complement Singapore LNG and gas pipeline: Report

An oil and gas expert has suggested that Singapore should venture into a brand new mode of transporting gas called compressed natural gas (CNG), Channel NewsAsia reported Wednesday.

Speaking at a seminar at the Institute of Southeast Asian Studies on Wednesday, Peter Cockcroft said that CNG could complement both a liquefied natural gas (LNG) terminal and a gas pipeline network.

And he believes the CNG system will add interconnectivity to the open access gas transmission system recommended by the Energy Review System Committee.

Under an open access system, any gas producer can offer gas into a common pool which importers can then draw from to meet their needs.

It is easier and therefore cheaper to compress gas, than to turn it into liquid.

That is one reason why gas and oil expert Cockcroft is recommending CNG to Singapore.

With LNG, expensive terminals are needed to turn gas into liquid form, and back to gas again for the users.

But it is better though to ship gas in a liquefied form over long distances - although CNG has its advantages when it comes to shorter distances.

Peter Cockcroft, Visiting Research Fellow, Institute of Southeast Asian Studies, said, "I don't think they are really in competition, as LNG will always be a better to way to ship gas, over long distance. I think that the advantage of CNG, over shorter distance, is that you don't need much infrastructure. And you don't need a re-gasification plant."

Last month, the government commissioned a S$4.9 million study into the building of an LNG receiving terminal in Singapore.

The terminal could cost as much as S$500 million, and take 6 to 7 years to build.

In contrast, Cockcroft says infrastructure costs for a CNG system, minus the tankers, are only one-tenth of that amount.

And he believes CNG can complement a LNG network - especially in South-east Asia, which has a large amount of stranded gas.

This is gas discovered by oil companies, but not brought into the market.

Cockcroft said, "We have the ingredients in place. We have gas which is stranded, discovered and not coming to market, especially in this region. We have a marketplace, which is dependent on high oil prices."

While there are risks in being the first mover, Cockcroft says the opportunities are immense.

And if it works well, Singapore could export the system to other countries. (*)