Singapore is pressing ahead with plans for a floating LNG terminal, its second such import facility, a government minister has confirmed.

Last November the city state’s Energy Market Authority (EMA) issued a non-binding expression of interest (EOI) for private companies to build, own and operate such a facility.

Tan See Leng, Singapore’s second minister for trade and industry, said the EOI had been “well received” by the industry, but gave few other details.

Speaking at a conference in Singapore, Tan said the second terminal is part of Singapore's plan to develop LNG-related services and infrastructure.

“The terminal will enhance Singapore’s value proposition as a LNG hub by increasing LNG trade flows in the region and providing services that support growing segments in the LNG market, such as bulk-breaking and bunkering,” he said.

He added that the EMA was currently “developing a regulatory framework” to facilitate the entry of such infrastructure.

Tan said this is but one component of “the bigger picture” Singapore aims to achieve with the development of a “comprehensive and trusted” ecosystem of LNG-related services and infrastructure solution providers.

“Today, our strategic location in this fast-growing region, pro-enterprise policies and strong support from our financial and legal sectors has seen more than 50 LNG trading or business development companies establishing a presence in Singapore,” he said.

Singapore began commercial operations of its first LNG terminal at Jurong Island in 2013. Photo: Singapore LNG

“As we strengthen our LNG trading ecosystem, I am confident that this number will continue to grow, cementing our status as an appealing destination for gas companies and professionals looking to expand their presence here.”

Tan said Singapore, like many countries in Asia, has been a major user of LNG and the growth in domestic demand has mirrored the increase in global demand.

“In 2001, when we first began using natural gas as an energy source for electricity generation, it made up 26% of our energy mix. Today, that figure has risen to 95%.”

“LNG is especially attractive for countries that face constraints in deploying renewables due to limitations in geography, size and a lack of hydro or geothermal resources.”

Singapore started commercial operations of its first LNG import terminal in May 2013 with a primary mandate to provide throughput services for the domestic market.

But the facility, which is operated by Singapore LNG, also offers ancillary services such as vessel cool-down, storage and reload, and LNG truck loading services.

Tan also said that the Singapore sees hydrogen as an “important energy solution”, and that it has taken initial steps to understand and chart the role that hydrogen can play in Singapore’s future energy landscape.

Last year, he said, various government agencies commissioned a joint study on hydrogen imports and downstream applications in Singapore.

He said the study will cover potential sources of hydrogen imports based on availability, cost, technical feasibility and supply security up to 2050.