Tokyo Gas shortlisted for Singapore's LNG feasibility study

Asian Economic News, Nov 24, 2004

SINGAPORE, Nov. 16 Kyodo

Japan's Tokyo Gas Engineering Co. has been chosen as one of five foreign companies to submit proposals for a feasibility study on the import of liquefied natural gas as a power source into Singapore, the Energy Market Authority said Tuesday.

Currently, about 60 percent of Singapore's electricity is generated by natural gas, which is imported via pipelines from Indonesia's South Sumatra and West Natuna gas fields, and from Malaysia. The government is planning to import LNG to diversify its gas sources.

The authority said it has also shortlisted Aker Kvaerner Engineering & Technology AS, Foster Wheeler Eastern Pte Ltd., the Schlumberger Business Consulting group and Shell Global Solutions (Singapore) (Pte) Ltd.

The outcome of the tender is expected to be announced in January.

The feasibility study will evaluate the business, financial and technical aspects of LNG import and recommend the most efficient and cost-effective method for importation, and also identify suitable sites in Singapore for the construction of an LNG terminal.

The study is expected to be completed within 12 months, and another six to seven years will be required to build the terminal, it said.

''The current tender is a strictly technical and economic study to assess the technical and economic viability of LNG use as an alternative fuel source,'' spokesman Tang Weng Fai said, adding that the successful tenderer for the feasibility study may not chosen to build the LNG terminal.