Singapore LNG potential attracts Indonesia

Recent electricity blackout that hit Singapore due to Natuna sea gas supply disturbance would make the island country?s government to consider LNG receiving terminal construction to diversify natural gas supply sources. And Indonesia is hoping to get its share as one of LNG suppliers to the tiny island.

?Our estimate is that Singapore is speeding up its plan to build LNG receiving terminal and would like to see the project materialize around 2008,? BP Migas senior official in charge of gas marketing Eddie Poerwanto told Petromindo.Com Friday. Eddie said LNG receiving terminal construction is of paramount importance for Singapore to avoid blackout, which tainted the country?s image as an embarrassing power failure in large parts of the city-state on June 29 due to problems in gas supply from Natuna Sea. Furthermore, he said, the blackout incident had make Singapore realized the vulnerability on depending on piped gas alone. Currently Singapore?s gas requirements are supplied through pipeline from Malaysia, and Indonesia, which come from Natuna Sea and Southern part of Sumatra.

Eddie said Indonesia is making marketing preparation to approach Singapore. Another BP Migas official Djoko Harsono said Indonesia is considering to offer LNG from BP-operated Tangguh project, which is also scheduled to commence production in 2007 or early 2008. ?We are optimistic Indonesia has competitive edge as Singapore?s future LNG supplier, as Indonesia?s proximity to Singapore will enable price competitive gas supply as well as security of supply for having two LNG centers, ? said Eddie.

However, both Eaddie and Djoko had no idea about Singapore?s planned LNG import size. Earlier report said that Singapore?s Energy Market Authority is planning to open tender for feasibility study for LNG receiving terminal within a short time. Oil companies and consultants said an LNG terminal would secure the supply of what is forecast to be Singapore's chief fuel in the coming decades. It can also position Singapore as an energy-trading center, an objective discussed at length by the Economic Review Committee in 2002. The feasibility study will, among others, identify at least two sites for a terminal and forecast Singapore's gas demand up to 2030.(godang)