Singapore has decided to go ahead with liquefied natural gas imports
Singapore has decided to go ahead with liquefied natural gas imports to meet future energy demand and ease its dependence on piped supplies from Indonesia and Malaysia, the trade minister said yesterday.
"We need to diversify our energy sources in order to ensure that we are not over-reliant on a single source for our energy needs," Lim Hng Kiang told an energy forum organised by the Energy Market Authority (EMA).
A study prepared by Tokyo Gas Engineering Co commissioned by the EMA has recommended building an LNG terminal to receive 3mn tonnes per year by 2012.
Other potential suppliers are Qatar and Iran, the EMA said.
The terminal is expected to cost about $500mn, Lim said. Industry sources said the funding could partly come from the city?s power plants that dominates Singapore?s natural gas consumption and the overall project would cost more if investments in LNG tankers were taken into account.