The Planning and Design of Lng Terminals for Singapore

PLANNING & DESIGN OF THE NEW LNG TERMINAL FOR SINGAPORE

Abstract- This project researches on the planning and design process of the new LNG terminal for Singapore. The demand of LNG in Singapore is shown to be increasing and LNG terminal sizing is thus studied. Business models considerations have been made in this project, and a terminal ownership without direct government participation is suggested. In consideration of land constraint in Singapore, we made the proposal for underwater LNG storage. The area around Jurong Island provides for the best location for storage facilities due to geographical reasons and its proximity to the petroleum based industries. A preliminary design has been proposed with each basic storage module consisting of four cryogenic storage tanks built with concrete and necessary insulation and reinforcement materials, a lower slab for fixation on seabed, and an upper slab to create land for use. Cost evaluation and comparison shows that underwater LNG storage facilities are more cost effective and safety is also concerned.

Keywords: LNG, design process, Terminal sizing, storage, petroleum

1 INTRODUCTION

Energy systems have been competitive on the basis of their costs, convenience and cleanliness. As consumers expect cheaper, more efficient and environmentally friendly sources of energy, LNG is gaining its share in the market. [9] Liquefied Natural Gas (LNG) is natural gas that is stored and transported in liquid form at atmospheric pressure and at a temperature of minus 160oC. [5]Like the natural gas that is delivered by pipeline to customers, it consists mainly of methane (CH4). [5] Liquefying natural gas provides a means of moving it over long distances when pipeline transportation is not feasible. [5] Natural gas is turned into a liquid using a refrigeration process in a liquefaction plant. [5]The unit where LNG is produced is called a train. Liquefying natural gas reduces its volume by a factor of 610. [7] The reduction in volume makes it practical to transport and store the gas. LNG is transported in specially built tanks in double hulled ships to a

receiving terminal, where it is stored in heavily insulated tanks. [7] The LNG is then sent to regasifiers which turn the liquid back into gas for distribution via the pipeline system to customers as part of their natural gas supply. [7] This project aims to research on and to suggest the planning process and concept design of the proposed gas terminal. The project takes reference of existing LNG terminals in other countries so as to draw lessons for Singapore.

2.0 LNG DEMAND IN SINGAPORE

2.1 ELECTRICITY DEMAND FORCAST AND FORCAST LNG DEMAND

Figures 2.1.1 and 2.1.2 illustrate the electricity demand forecast of Singapore and forecast of LNG demand basing on electricity demand.

Fig 2.1.1: Electricity demand Forecast

Fig2.1.2: Base Case Demand for LNG

2.2 proposed LNG Terminal Sizing

Fig2.2.1: LNG Terminal Capacity Profile

The recommended storage capacity was determined having regard to the likely capacity of LNG vessels, seasonal fluctuations in demand (which are expected to be limited) and a preference that the terminal hold a strategic reserve equal to 7 days' LNG supply (which would be equivalent to 3 to 5 days of natural gas consumption in case of disruptions to the supply of piped gas). The preferred quantity of strategic reserve has been determined having reference to the incremental cost of the required terminal capacity.

3.0. BUSINESS MODELS CONSIDERATION

3.1 KEY CONSIDERATIONS

From the perspective of the LNG terminal some of the key objectives that are relevant to the gas market have been considered and are shown below.

Exhibit3.1.1: Regulatory Framework objectives

3.2 GENERIC BUSINESS MODEL

Exhibit 3.2.1: Generic LNG terminal business models

Exhibit3.2.2: The Tolling structure and Contractual Agreements

3.3 TERMINAL OWNERSHIP

It is expected that the terminal will be constructed, owned and operated by the private sector and that Government will only provide indirect support to the terminal. The EMA recommends that terminal ownership should be subject to the following principles:

①.a 30% interest should be held by a designated Singapore incorporated entity such as the Singapore government-owned PowerGas (the incumbent gas transporter in the Singapore gas market); ②.Electricity generators and their related entities may only take an interest up to 30%; and ③Electricity generators and their related entities would not be entitled to control the single largest block of voting shares in aggregate.

The terminal owner will be selected through a competitive bidding process. With respect to third party access, we expect that access will be granted to third parties on a non-discriminatory basis in accordance with existing Singaporean regulation such as the Gas Network Code. This will ensure that the applicable open access principles to essential infrastructure are consistently applied throughout the energy supply chain.

4.0 LAND CONSTRAINT IN SINGAPORE AND PROPOSAL FOR UNDERWATER LNG STOGRAGE

Singapore is the busiest port in the world. Today Singapore is suffering from acute shortage of land area for the development of its petroleum industries and with a little undeveloped coast area; space restriction is even stricter. Various land reclamation projects have indulged, but land reclamation is very costly and it also causes an enormous amount of ecological destruction and disturbance to the surroundings. However, with the decreasing shallow areas for land reclamation and increasing demand for environmental assessment and effective investment, these projects become unpopular. With such a situation on hand, less sensitive storage facilities can be located offshore which can help save up land area for more critical purposes. Offshore projects provide the same safety as land projects and at an even lower price than the land reclamation projects.

Fig