Singapore forms committee to review electricity, gas systems
Saturday, October 16 2004 - 02:32 AM WIB
?They (ESRC) will interview key stakeholders, conduct site visits to power generation plants and hold round-table discussions with policy-makers, the regulator, gas and electricity companies and large electricity customers,? senior minister Vivian Balakrishnan said in a statement on Thursday.
?The aim is to strengthen system reliability so that we have robust systems resilient against accident or disaster.?
The ESRC will be chaired by Jock McKenzie, former President for Asia, Middle East and Africa, ChevronTexaco Corporation. Meanwhile, the other eight members of the committee are experienced individuals from local and foreign companies, academia, and industry experts from the energy sector.
?It is expected to complete its review and to submit its report to the Government in 2005,? Vivian Balakrishnan said.
According to Business Times of Singapore, the committee will begin evaluating various proposals, including connecting the Natuna and Sumatra pipelines.
?There is no reliability at the moment because they are two separate grids,? a source was quoted by Business Times as saying.
?The question is should the connection be only for emergency purposes? Or will gas from the two different fields mingle? This raises commercial issues, as Natuna gas is brought in by SembGas, while Sumatran gas is brought in by Gas Supply Pte Ltd.?
The latest blackout was caused by a disruption to gas supply from the Natuna field when a critical intake valve at a pumping station operated by US-based ConocoPhillips failed.
Interconnecting the two Indonesian gas pipelines would make the system more robust.
There are various ways to do this, sources say. The first is to connect upstream - that is, at the submarine pipeline end, which would be costly. The second is to connect after the gas arrives at the receiving stations on Jurong Island, which means both Natuna and Sumatran gas would be mingled, or mixed.
While there is some difference in the gas quality from the two fields, such as the level of metal and carbon dioxide, this is not substantial, sources say. The complication is more of a commercial nature, as one of the importers indemnifies its customers over the gas quality, while the other does not.
A third option is to provide end-users - namely, the power stations - with dual pipelines separately bringing gas from the two Indonesian fields.
Practically, SembGas, which imports Natuna gas, already pipes supplies to Tuas Power and Power Seraya, while GSPL, with Sumatra gas pipes, supplies Power Seraya and Senoko Power and is building a pipeline - ready by April 2005 - to Tuas Power.
This means that both Tuas and Seraya stations will have dual coverage, and SembGas only needs to build a pipeline to Senoko - which already has Malaysian gas piped in - to provide double cover there for Indonesian gas. Smaller co-generation power plants, like those of Shell and ExxonMobil, could easily tap these pipelines.
?With double pipelines everywhere, there is also less risk of an interconnected gas grid, carrying both Natuna and Sumatra gas, pulling the entire system down,? a source said.
Separately, Energy Market Authority (EMA) is continuing to evaluate bids by 26 consortiums vying to conduct a feasibility study on the use of liquefied natural gas to diversify Singapore's energy supplies.
LNG, which can be shipped in from anywhere in the world, would give the country added security, supplementing the natural gas piped here from Malaysia and Indonesia.
EMA previously indicated that it expected to short-list groups for the LNG study by early-October, but Business Times predicted that the short-list is now not expected for a month or two because of the overwhelming response.
Observers say Singapore is serious about going the LNG route but needs to make some decisions soon, as it takes six or seven years to get an LNG project going - from feasibility study to tying up supplies and building a receiving terminal. (*)