Singapore PowerGas starts work on new Sakra gas station

Singapore's PowerGas is starting work on a new S$22 million natural gas receiving and metering station at Sakra on Jurong Island, Asis Pulse reported Friday.

This is in preparation for the first delivery of natural gas from South Sumatra in Indonesia, scheduled for August next year.

The new Jurong gas station will provide a landing point for a major new submarine pipeline linking South Sumatra to Singapore.

The natural gas delivered from Sumatra will supplement current imports by SembCorp Gas, from Indonesia's West Natuna Sea.

Singapore Power's president Kwek Siew Jin said, "The completion of Sakra Natural gas in mid-2003 will take us another step closer to the fulfilment of the Sumatra Gas Sales Agreement between Indonesia and Singapore."

Singapore is one of the biggest gas consumers in the region.

But Minister of State for Trade and Industry Raymond Lim said the move is all part of a blueprint to expand Singapore's role in the Asian Gas grid, to become more than just a gas buyer.

"Another role we can play is to leverage on our financial expertise. To help develop a region wide energy market. And that's something we proposed to ASEAN partners and something that's being studied," said Mr Lim.

Gas deals with major players like Indonesia and Malaysia will help enhance security for energy supply requirements of Singapore.

The Sakra Natural Gas station points to strong bilateral relations between Singapore and Indonesia, and is seen as contributing to the realisation of a TransASEAN gas pipeline, which will one day link up gas buyers and sellers all over the region.(*)