Singapore?s SembGas confirms to buy additional gas from RI: Report
Saturday, March 27 2004 - 01:04 AM WIB
SembGas is looking to secure the additional gas for delivery in the first quarter of 2005, she said.
"In order to meet incremental demand from our customers, SembCorp Gas is continuously looking for additional supplies of gas into Singapore. We are currently evaluating several options. No plans have been firmed up to date," the spokeswoman said.
Industry sources said the extra volume is about 50 MMCFD, which the SembGas spokeswoman declined to confirm.
The West Natuna gas is currently transported via a 640-kilometer pipeline which stretches from the West Natuna fields to Singapore. The pipeline has a maximum capacity to deliver 700 MMCFD of uncompressed gas and 1,000 MMCFD of compressed gas.
Out of the total 325 MMCFD offtake, SembGas is supplying about 200 MMCFD to two local power generators - PowerSeraya and Tuas Power.
The additional gas purchase is likely for a possible early startup of Tuas Power's new 735 MW combined cycle power plant, which is originally slated to be commissioned in the first quarter of 2006, sources close to the industry said.
The extra demand is expected to be temporary, lasting maybe about a year, or at least until PowerSeraya receives its first gas from Indonesia's Asamera field in Southern Sumatra, sources said.
Tuas Power is scheduled to increase its gas offtake from SembGas only in 2006, with the extra gas coming from the existing supply to the current buyer, PowerSeraya.
According to the original plan, SembGas would stop the existing 100 MMCFD West Natuna gas supply to PowerSeraya in 2006 as PowerSeraya would begin its offtake of Asamera gas supply via the Grissik gas pipeline.
The Grissik pipeline, which delivered first gas to Singapore last year, is expected to deliver up to 350 MMCFD by 2009.
PowerSeraya is currently utilizing the West Natuna gas to run a 740-MW combined cycle power plant.
Tuas Power may be pushing for an early startup of its more efficient dual-fuel combined cycle plant amid an increasingly competitive electricity market in Singapore.
Tuas Power officials declined to comment on the possible early startup for the plant.
Singapore is facing a huge power oversupply, with the 8,900 MW installed capacity catering to a peak demand of 5,050 MW.
Power producers in Singapore are trying to increase gas-fired power generation due to the higher efficiency rate compared with thermal power plants. (*)