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Singapore LNG Corporation Pte Ltd. (SLNG) has awarded a FEED (Front End Engineering Design) contract to WorleyParsons Pte Ltd. (WorleyParsons) to define the scope of the expansion of its LNG Terminal send-out and storage capacities.

The expansion plans include the installation of additional facilities to increase the terminal’s capacity from its current 6 million tonnes per annum (mtpa) throughput to a new annual capacity of 9 mtpa, and the construction of a fourth tank.

"The FEED project is vital as it provides the required engineering design and comprehensive scope of works that will enable SLNG to invite tenders for the Engineering, Procurement, and Construction (EPC) contract for the construction of the new facilities, as well as develop the capital cost estimates for the expansion. The project officially kicked off on 29 October 2012 and is expected to be completed by early Q2 2013. The final investment decision for the construction of the fourth LNG storage tank and its associated facilities will be made after that," explained Neil McGregor, Chief Executive Officer of SLNG.

"WorleyParsons was selected following a rigorous tender process, because it offered the best overall value from among the bidding companies. The design to be delivered by WorleyParsons will also explore possible future expansions, including the feasibility of a fifth and subsequent tanks," he added.

Commenting on the contract award, Andrew Wood, WorleyParsons’ Chief Executive Officer said: "WorleyParsons appreciates the opportunity provided by SLNG to provide high quality FEED services for the expansion of Singapore’s LNG Terminal. In recent times, our team in Singapore, in collaboration with global experts, has achieved a market leader status in the design of onshore and floating LNG regasification facilities. We are looking forward to bringing this experience to the fore and working closely with the SLNG team to provide a design solution which caters to the future expansion, thereby allowing SLNG to achieve its vision and business goals."

The award of this FEED contract follows the recent announcement by Mr S Iswaran, Minister in the Prime Minister’s Office and Second Minister for Home Affairs and Trade & Industry, that a fourth tank would be added to the LNG Terminal.

"The additional tank and its associated facilities will further enhance Singapore’s energy security by allowing further diversification of fuel sources. The additional capacity will also allow Singapore to respond to new opportunities in global LNG markets," SLNG said.

Image: Third LNG tank at SLNG's terminal on Jurong Island.