SembCorp plans to build 150 mln sgd natural gas plant
Monday, January 15 2001 - 02:00 PM WIB
SembCorp Utilities is planning to invest about 150 mln sgd to construct a natural gas liquid plant, the first in Singapore, SembCorp Gas general manager Francis Gomez said.
Gomez said the company will be conducting a feasibility study to determine whether there will be enough demand to justify the project which is tentatively scheduled to begin operation by the second half of 2004.
Construction of the facility will take about two years to finish "so we have to make a decision by the second half of next year," he added.
"SembCorp Gas has the network, infrastructure and customer base to support the growth of a gas-based petrochemical industry in Singapore with a natural gas liquid plant in Jurong Island, should demand justify it," Gomez said.
SembCorp Gas received its maiden supply of natural gas from Indonesia's West Natuna Sea last week, six months ahead of the July 2001 schedule contained in a 22-year sales deal it signed in 1 with Pertamina.
Based on the deal, Indonesia's state-owned Pertamina will be delivering 325 mln standard cubic feet of natural gas per day to SembCorp.
"Full delivery of the contracted quantity of gas is expected early 2002," SembCorp Industries deputy chairman Wong Kok Siew said.
SembCorp Gas has begun the delivery of gas to SembCorp Cogen and ExxonMobil, while signing up 25 new deals with buyers belonging to the pharmaceutical, electrical, food and beverage, printing and packaging industries.
"This is in addition to existing off-takers like Tuas Power, SembCorp Cogen, Power Seraya, ExxonMobil and Ellba. Gas will be delivered to new customers through a medium pressure reticulation network in the second quarter of 2001," Wong said.
These commitments can potentially bring in 1.0 mln usd in revenue per day, Gomez said.
About 5 pct of the gas will be used for power generation, with the remainder for industrial fuel use, as petrochemical feedstock, and domestic use.
By 2004 and beyond, power generation will account for 70 pct.
SembCorp Gas will be channeling a portion of the imported natural gas for compressed natural gas (CNG) which can be used for public transport, officials said.
It will be putting up a pilot CNG filling station in Tuas which will run a fleet of 30 buses serving the Jurong and Tuas industrial area. The station will start to operate by the end of this year, they said.
If the project turns out to be successful, the company will set up an island-wide network of CNG filling stations.
The pilot project was provided under a letter of understanding the company signed with the Ministry of Environment, Singapore Bus Services and DelGro Engineering/Volvo East Asia.
SembCorp Gas is 50 pct owned by SembCorp Utilities, with Temasek Holdings and Tractebel owning the remaining 30 pct and 20 pct, respectively. (*)