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Singapore LNG Corporation Pte. Ltd. (SLNG) has awarded the engineering, procurement, and construction (EPC) contract for the secondary berth of its LNG Terminal on Jurong Island.

About the Secondary Berth Project

The Secondary Berth Project, covering approximately 10 hectares of reclaimed land adjacent to the LNG Terminal site, forms part of the S$1.7 billion overall Singapore LNG Terminal project cost and comprises:

(1) a secondary jetty designed to berth LNG ships with a cargo capacity ranging from 60,000 to 265,000 cubic metres (m3), and

(2) a tertiary jetty marine sub-structure designed for the future berthing of smaller LNG ships and barges with cargo capacity ranging from 10,000 to 40,000 m3.

These two new jetties are in addition to the primary jetty (cargo capacity of 120,000 to 265,000 m3) which is being constructed by Samsung C&T Corporation (Samsung) as part of the current LNG Terminal EPC contract.

Secondary Berth Project Adds Potential to Develop Other Services of the LNG Terminal

"Overall the Secondary Berth Project adds flexibility and value to the range of LNG Terminal services that SLNG can offer its customers in Singapore and regionally. This is totally consistent with our goal of becoming a gas hub for the region," explained Mr Neil McGregor, SLNG’s Chief Executive Officer.

“We have a masterplan with built-in options to the LNG Terminal that will facilitate the majority of LNG market scenarios that are likely to develop in the region,” added McGregor.

The secondary jetty has space provision for the future installation of loading arms and associated piping for the unloading of refrigerated Liquefied Petroleum Gas (LPG) ships with cargo capacity range of 60,000 to 80,000 m3. This will facilitate the future import of LPG (a substitute of naptha) as a feedstock for Singapore’s four ethylene crackers, when the market requires it.

The secondary jetty will allow for the development of an LNG break bulk business i.e the unloading of LNG from larger ships for later reloading onto smaller ships able to access markets where port facilities cannot handle larger LNG ships; and also allows for the reloading of smaller LNG vessels to facilitate prospective future regional LNG redistribution, and potentially future LNG bunkering opportunities. According to SLNG, these are options that, if not allowed for now, would be extremely difficult to retrofit in the future.

“With its additional berthing capacity, the Secondary Jetty will improve the resilience of the LNG Terminal and enable Singapore to import more LNG when required. This will add to EMA’s efforts to enhance Singapore’s energy security and diversify our natural gas supplies.” said Chee Hong Tat, Chief Executive, Energy Market Authority.

Award of the EPC Contract for Secondary Berth Project

The tender was keenly contested by four tenderers and some novel design alternatives were received as part of the tender process. After a rigorous and robust selection process, SLNG awarded the EPC contract to Samsung for an undisclosed sum. Apart from putting forward the most competitive and lowest priced tender, Samsung's design and engineering proposal was found to provide the best quality and to deliver the best value to SLNG. McGregor commented: "There are some synergistic benefits to having Samsung as a single contractor across both sites. However, the award was made on merit, considering each tender as a standalone proposal."

“Samsung is very pleased to be awarded the Secondary Berth Project by SLNG. Our success in this tender demonstrates Samsung’s continued commitment to making Singapore’s LNG Terminal a reality. We are confident of delivering both the LNG Terminal and Secondary Berth projects safely and within schedule,” said Paul Shin, Vice President & Head of South East Asia of Samsung C&T Corporation.

Main LNG Terminal on Track

The EPC work on the Secondary Berth will take approximately 29 months and is expected to begin in late August 2011 and targeted for completion in December 2013. The main LNG Terminal project is progressing well and is fast approaching 50 percent overall completion. Over two million man hours have been worked on site to date without lost time injury. Final commissioning of the LNG Terminal is expected to be completed on schedule for commercial operations to commence by second quarter of 2013.