Paving The Way For The Energy Transition by singaporelng

PAVING THE

WAY

FOR THE ENERGY TRANSITION

TKOO1

PAVING THE

WAY FOR THE ENERGY TRANSITION

CONTENTS

08 FOREWORD Mr Lawrence Wong Deputy Prime Minister and Minister for Finance

MESSAGE 10 CHAIRMAN’S Mr Tang Kin Fei Chairman, Singapore LNG Corporation

NEED FOR A MORE 14 THE SECURE ENERGY FUTURE CHAPTER ONE

2006 – 2009

22 PIONEERING A NEW PATH CHAPTER TWO

2010 – 2013

THE PATH & 38 FORTIFYING PUSHING BOUNDARIES CHAPTER THREE

2014 – 2018

UP FOR THE 52 RAMPING ENERGY TRANSITION CHAPTER FOUR

2019 – 2023

AHEAD TO THE NEXT 68 FORGING DECADE AND BEYOND CHAPTER FIVE

82 POWERING THE WAY FORWARD THE SLNG STORY

86 AFTERWORD 88 ACKNOWLEDGEMENTS

The terminal’s design provides for a third jetty to be installed, if required.

The terminal has room for four more storage tanks to be built.

The terminal with its four storage tanks built to-date.

The terminal in its early days of construction.

LOC AT ED ON A

40-HECTARE PLOT AT THE SOU T H ER N-MOS T T I P OF

JURONG ISL AND

MOR E T H A N

95 PER CENT OF SINGAPORE’S E L EC TRI C I T Y

I S GE NE RATED U S I N G N AT U R A L G A S.

FOREWORD Mr Lawrence Wong Deputy Prime Minister and Minister for Finance

Paving The Way For The Energy Transition

SLNG has been a critical partner of Government and our power generation companies, playing a key role in times of market volatility to secure supplies from the global market. Beyond energy security, SLNG’s range of services and capabilities has helped to develop a vibrant energy ecosystem.

Congratulations to everyone at SLNG on the 10th anniversary of the LNG Terminal’s operations!

industry professionals and worked closely with them to form the initial team at SLNG, and to get the company started.

Singapore has come a long way in securing our energy sources. From coal, we have shifted largely to using natural gas for power generation. We have one of the most reliable power networks in the world supporting the needs of our modern city.

Since then, SLNG has made tremendous progress. Today, about half of our total natural gas for power generation flows through its terminal. SLNG has also been a critical partner of Government and our power generation companies, playing a key role in times of market volatility to secure supplies from the global market. Beyond energy security, SLNG’s range of services and capabilities has helped to develop a vibrant energy ecosystem. Singapore is now one of the largest LNG trading hubs in the world, ranking among the top countries in terms of LNG re-export volumes.

A key enabler is access to liquefied natural gas or LNG. The opening of the LNG terminal a decade ago was a major milestone. I still remember the events leading up to this milestone. It was soon after the Global Financial Crisis and the high financial costs made it difficult for the LNG terminal to carry on as a commercial undertaking. The Government assessed that the LNG terminal was important for energy security, and decided to take over the project. I was at the Energy Market Authority (EMA) then and we set up SLNG as a subsidiary company to build, own and operate the terminal. We had to tackle many challenges at the start. EMA then did not have any expertise in building or running an LNG terminal. We brought in

I have every confidence that the team at SLNG will continue to do their best in meeting Singapore’s energy needs, and contribute to our transition to greener fuels. SLNG has been working with its partners to study low-carbon alternatives such as hydrogen and the use of cold energy to support carbon capture and storage. Through close partnership and collaboration, we can continue to ensure reliable and sustainable energy for Singapore for many years to come.

SLNG Celebrates A Decade of Energising Possibilities Together

CHAIRMAN’S MESSAGE Mr Tang Kin Fei Chairman, Singapore LNG Corporation

With a mix of sheer determination, can-do spirit and problem-solving ingenuity, we overcame many challenges along the way to build the world-class LNG terminal we have today.

Paving The Way For The Energy Transition

2023 is an exciting year for Singapore LNG Corporation (SLNG), especially as we celebrate the 10th anniversary of the start of commercial operations at the SLNG Terminal. I am proud to present this commemorative book, which shares highlights of SLNG’s journey and key achievements over the past decade.

When the SLNG Terminal began commercial operations on Jurong Island on 7 May 2013, with just one jetty and two storage tanks, it marked the start of a new chapter in Singapore’s energy story. Being the first LNG terminal here, there was no “local model” we could readily emulate – we were the pioneers, so to speak, beating out a fresh new path for the Singapore LNG industry. We brought in experts from around the world to help us get started and to learn from, and we recruited locally to operate the terminal and develop the talent pool for the industry. The journey to reach this 10-year milestone was not all smooth-sailing. But with a mix of sheer determination, can-do spirit and problem-solving ingenuity, we overcame many challenges along the way to build the worldclass LNG terminal we have today; one that operates to the highest safety and reliability standards, can accommodate a wide range of LNG carriers, and is able to serve the needs of domestic and regional LNG markets alike. Today, the SLNG Terminal is key infrastructure for Singapore’s energy security, supplying some 50 per cent of the country’s natural gas used for power generation. It has the capacity and capability to support all of Singapore’s power generation needs, if called upon to do so. More recently, the COVID-19 pandemic presented SLNG with a new and unprecedented set of challenges that required not just meticulous attention to the health and

safety of our employees, but also forwardthinking and creativity to keep the terminal running without disruption. I am proud to say that SLNG did well to rise to the challenge. Moving forward, SLNG will be building upon the experiences of its first 10 years to catalyse exciting new possibilities for Singapore’s energy transition. This includes expanding our infrastructure to better serve the market’s needs, exploring ways to recover cold energy for various uses, and facilitating the adoption of more sustainable fuel sources to support Singapore’s decarbonisation efforts and further enhance energy security. I invite you to peruse this book at your leisure to learn more about SLNG’s 10-year journey thus far, and where we are heading towards in the years to come. I would like to add that our successes would not have been possible if not for the support and collaboration we have received over the years from stakeholders such as the Singapore Government, particularly our shareholder the Energy Market Authority; key customers such as Shell Gas Marketing, Shell Eastern Trading, Pavilion Energy Singapore, ExxonMobil Asia Pacific and Sembcorp Fuels (Singapore) Pte Ltd; and all our end users. I would like to extend my heartfelt gratitude to them, as well as to SLNG’s past and present Board Members, senior management and staff, who have all contributed to SLNG’s successes through the years. SLNG Celebrates A Decade of Energising Possibilities Together

CATALYSING NEW POSSIBILITIES IN THE ENERGY TRANSITION

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C H A P T E R

O N E

HE NEED FOR A MORE SECURE ENERG FUTURE 2 0 0 6

–

2 0 0 9

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Senoko Power Station

A FUEL FOR LIFE FOR over 30 years, natural gas has helped to

keep Singapore’s homes, offices, factories and more, running; powering the country’s development and growth. In 1992, Senoko power plant was the first power plant in Singapore to be fuelled by piped natural gas from Malaysia. Since then, the use of natural gas for power generation has grown – from just under 20 per cent in 2000, when oil was still the preferred fuel, to more than 95 per cent today. While natural gas is a fossil fuel, it is the cleanest one, emitting 50 to 60 per cent less carbon dioxide when burnt. When considered along with its relative availability and cost-effectiveness, natural gas is the most ideal fuel source for Singapore, helping to bridge the gap even as the country moves forward to invest in more sustainable and renewable energy sources.

SLNG Celebrates A Decade of Energising Possibilities Together

MOVING B E YO N D PIPE S SINGAPORE’S switch from oil to

natural gas began with the import of piped natural gas from Malaysia. As the country grew economically and prospered, moving from Third World to First, the demand for electrical power increased in tandem. To meet the rising needs, Singapore signed a US$8 billion, 22-year agreement with Indonesia to start importing natural gas from West Natuna through a more-than-650-kilometre-long pipeline in 2001. Just two years later, it inked a US$9 billion, 20-year agreement to bring in more of the gas from South Sumatra in Indonesia. While these deals helped to fulfil the surging demand, Singapore’s reliance on piped natural gas meant that it was limited in its options for fuel sources, and vulnerable to supply disruptions. In one instance, a disruption in the gas supply from West Natuna to Singapore in 2004 left more 18

Paving The Way For The Energy Transition

than 300,000 homes in the dark and caused over S$6 million in economic losses. With the high stakes for Singapore’s continued growth, the government looked for other ways to import the gas. In 2006, then-Minister for Trade and Industry Lim Hng Kiang announced that Singapore would build a liquefied natural gas (LNG) terminal, enabling it to ship natural gas to the nation in liquid form from various sources. He said: “ With no natural fuel sources of our own, we are exposed to the ups and downs of the global fuel market. We have no choice but to buy all the fuel that we need… We need to diversify our energy sources in order to ensure that we are not over-reliant on a single source for our energy needs.”

At the same time, having an LNG terminal would empower Singapore to become a trading hub for the fuel in Asia, attracting traders and related firms, creating jobs and adding another economic engine for the country.

Over the years, natural gas has helped to meet Singapore’s rising energy demand from homes, offices, factories and more.

Building a liquefied natural gas (LNG) terminal has enabled Singapore to import the fuel from anywhere in the world, boosting its energy security and enabling it to become an LNG trading hub.

SLNG Celebrates A Decade of Energising Possibilities Together

NATURAL GAS IN SINGAPORE Singapore imports natural gas via pipelines and in liquid form as LNG. Natural gas has a wide range of applications that include: Feed for various industrial or manufacturing processes

Residential cooking

Electricity generation

Fuel for transportation

Paving The Way For The Energy Transition

A LO CA L CH A M P I ON FOR LNG WITH the decision made to build

the LNG terminal, the Singapore government initially sought a public-private partnership to develop it. However, as the global financial crisis roiled the world from 2007 to 2009 and financial markets became less welcoming due to the economic uncertainties, the public-private partnership model became

increasingly unfeasible. Hence, the government decided to step in and take over the terminal’s ownership and development. In June 2009, the Energy Market Authority (EMA) incorporated a wholly-owned new company to design, build, own and operate the terminal – Singapore LNG Corporation Pte Ltd, or SLNG.

SLNG was formed in 2009 to design, build, own and operate Singapore’s first LNG terminal.

SLNG Celebrates A Decade of Energising Possibilities Together

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C H A P T E R

T WO

PI NEERING A NEW P TH 2 0 10

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2 0 13

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SLNG Terminal

A TERMINAL TA K E S S H AP E WITH SLNG set up and a new team at the helm,

it was full steam ahead to design and construct the terminal. The government designated a 30-hectare site at the southern-most tip of Jurong Island for the terminal, which was later expanded to 40 hectares to accommodate projected infrastructure expansions in the future. The location was carefully chosen to ensure public safety and security of the installation, with sufficient land for future expansions, and water deep enough for large ships to berth. In 2010, SLNG awarded the approximately S$1 billion contract for the engineering, procurement and construction of the terminal to Samsung C&T Corporation. The South Korean conglomerate and its major subcontractors Fluor and Kogas-Tech had accumulated a wealth of experience in developing LNG terminal projects globally, and were thus a safe pair of hands.

SLNG Celebrates A Decade of Energising Possibilities Together

To manage the complex task of overseeing the terminal’s build, SLNG also appointed Foster Wheeler Asia Pacific, a worldwide engineering company that was a veteran in the LNG sector, with considerable experience in large-scale projects on Jurong Island, as its project management consultant. Through an integrated team and partnership approach, SLNG’s Project Development team worked together with Foster Wheeler to manage the completion of the terminal.

One of the SLNG Terminal’s storage tanks under construction.

Paving The Way For The Energy Transition

The terminal was designed to be Asia’s first open-access, multi-user terminal capable of importing and re-exporting LNG from multiple suppliers. Mr Neil McGregor, SLNG’s first Chief Executive Officer, recalled the breadth and depth of the design challenge: “ The terminal was not only going to be a key part of Singapore’s energy security, but also had to be flexible and scalable enough to be future-proof, as this could not have been retrofitted at a later date. We had to think of every possible use that it might be called upon to serve over its full life, and build these options into the design. I believe that is what we had achieved.”

Pouring cement to build the storage tank.

Mr Neil McGregor Former Chief Executive Officer Singapore LNG Corporation (2009 – 2013)

The facilities to be built in the initial phases of construction included three massive LNG storage tanks and two jetties. The latter spanned a primary jetty for LNG ships with a cargo capacity ranging from 120,000 to 265,000 cubic metres, and a secondary jetty for those with a capacity from 60,000 to 265,000 cubic metres.

It is a testimony to the many people who came together to create this terminal from scratch, that it has been very successful in moving Singapore forward. It has been key to the country’s progress, and in raising the standard of living for its people. Everyone should be very proud of it.

With the terminal classified as a key installation delivering essential services for Singapore, its design had to take into account possible threats identified by the Ministry of Home Affairs. For example, the walls and roof of its storage tanks are thick enough to withstand bomb blasts, and the terminal’s parameter is fortified by a security fence that can stop heavy vehicles in their tracks.

SLNG Celebrates A Decade of Energising Possibilities Together

The SLNG Terminal is Asia’s first open-access, multi-user terminal that can import and re-export LNG from mutiple suppliers.

Each tank sits on an area of around 6,358 square metres, equivalent to the area of 14 basketball courts.

SHEDDING LIGHT ON STORAGE The SLNG Terminal’s first three storage tanks can each hold 180,000 cubic metres of LNG. Here are other fun facts about the tanks. More than 27,800 cubic metres of concrete, 5,000 tonnes of steel reinforcement bars and 3,600 tonnes of steel plate were used to build each tank.

Two additional layers of nickel steel plate and carbon steel plate line the inside of each tank’s onemetre-thick concrete walls.

Each tank is large enough to contain two Airbus A380 aircraft stacked on top of one another.

53m(h) x 90m(w) 6,358 square metres 28

Paving The Way For The Energy Transition

A RE M A RK A B L E CO N STRUC T I O N THE terminal’s construction, which started

with a ground-breaking ceremony on 31 March 2010, was an intricate and complicated undertaking. With thousands of workers of different nationalities and backgrounds descending on Jurong Island to be part of the project, training was mandated to ensure that all of them could carry out their responsibilities to the same high safety standard, before they were even allowed on site.

one safety coordinator for every 20 workers, Had at least

a higher standard than usual in the industry.

The SLNG Terminal’s ground-breaking ceremony on 31 March 2010.

SLNG Celebrates A Decade of Energising Possibilities Together

Attention to safety remained a top priority throughout the construction of the terminal. Each morning, supervisors led physical exercises and held toolbox meetings – essentially safety briefings – tailored to the day’s work. The supervisors also checked that the workers wore the required and proper safety equipment. Foster Wheeler, Samsung C&T and the subcontractors for the project each deployed their own safety officers, and had at least one safety coordinator for every 20 workers, a higher standard than is usual in the industry. With these precautions and oversight in place, as well as other measures such as regular inspections of equipment and machinery, SLNG preserved a sterling safety record for the terminal’s construction, achieving over 15 million man-hours of work without any lost-time incidents (which refer to those that result in disabilities or an employee missing work due to an injury).

(Above left and right) A strict adherence to high safety standards was maintained throughout the terminal’s construction.

The accomplishment was all the more remarkable considering there were some 2,900 people working on the site at the peak of the construction. Working closely in tandem with the construction schedule was Power Gas, a subsidiary of Singapore Power, who ensured that 65 kilometres of new gas pipelines were ready to receive regasified LNG into the existing network when the terminal was ready for commercial operations.

Paving The Way For The Energy Transition

2,900 people working on the site at the peak of the construction.

As the terminal rose from the ground, a new commercial model was also being developed.

BUILDING SUPPORT FOR LNG AS the terminal rose from the

ground, SLNG also worked with the government on a new commercial model for LNG. With Singapore’s limited market for the fuel at the time, the country would be able to negotiate better terms with suppliers by consolidating demand and procuring the fuel through an aggregator.

In 2008, after a competitive tender process, EMA issued the first LNG import licence to BG Singapore Gas Marketing (BG), which is now part of energy conglomerate Shell, giving it the exclusive right to aggregate demand for LNG from end-users in Singapore and import up to three million tonnes of LNG per year into Singapore. The British multinational oil and gas company was a leading player in the global LNG industry then, and had a diverse portfolio of sources for the fuel.

First LNG import licence was awarded to BG to bring in up to three million tonnes of LNG per year.

SLNG Celebrates A Decade of Energising Possibilities Together

Even before the terminal started operations, the International Energy Agency (IEA) noted Singapore’s advantages to become a competitive natural gas trading hub.

By the time the terminal’s construction got underway, six power generation companies had signed long-term gas purchase agreements with BG totalling about 1.5 million tonnes per annum (Mtpa), signalling their commitment and giving the terminal a running start. The firms were Senoko Energy, YTL PowerSeraya, Tuas Power, Sembcorp Cogen, Keppel Merlimau Cogen and Island Power Company (now PacificLight Power).

in 2013, Singapore had the makings for such a role as it was already one of the world’s biggest oil-trading hubs, with the government commanding considerable experience in regulating the energy commodity trade. Senoko Energy YTL PowerSeraya Tuas Power

SLNG and the government also put in place the pieces for Singapore to become a regional LNG trading hub. As the International Energy Agency (IEA) wrote in a report published shortly before the terminal’s opening

Paving The Way For The Energy Transition

BG Singapore Gas Marketing (now Shell Gas Marketing)

Sembcorp Cogen Keppel Merlimau Cogen Island Power Company (now PacificLight Power)

Compared to other potential trading hubs in the region, “Singapore seems the candidate best suited to develop a competitive natural gas market and trading hub in the medium term,” the IEA noted. Highlighting the importance of LNG to Singapore’s future, Mr Chee Hong Tat, who was Chief Executive of EMA at the

Mr Chee Hong Tat Senior Minister of State for the Ministry of Finance and Ministry of Transport Former Chief Executive Energy Market Authority

time, and is currently Senior Minister of State for the Ministry of Finance and Ministry of Transport, explained: “ The introduction of LNG was pivotal in diversifying Singapore’s gas supplies and enhancing our energy security. It also encouraged new plantings by power generation companies, and supported the growth of new business activities such as LNG trading and bunkering.”

I thank the founding team at SLNG, led by Chairman Bob Tan and Chief Executive Officer Neil McGregor, for their excellent work in getting the LNG terminal started on time and within budget, while achieving a very good safety record during the construction.

(2011 – 2015)

SLNG Celebrates A Decade of Energising Possibilities Together

CROSSING IN T O A NE W E NE RGY FUT URE WITH the terminal near

completion, SLNG received its first commissioning LNG cargo from Qatargas in March 2013. This was used to cool the terminal’s storage tanks and pipes to their operating temperature of about -161 degrees Celsius and get them ready for full and continuous operations. The arrival of the cargo on the Umm Slal, which is a Q-Max

LNG vessel, not only affirmed that the terminal could accommodate the largest LNG ships in the world, but also that Singapore could import LNG from any country, opening up previously unavailable supply options. After years of preparation and hard work, the terminal welcomed its first commercial cargo from BG on 7 May 2013, marking the start

The terminal welcomed its first commercial cargo on 7 May 2013.

Paving The Way For The Energy Transition

-161°C

Operating Temperature

Prime Minister Lee Hsien Loong officiating the opening of the SLNG Terminal on 25 February 2014.

of its commercial operations, and creating a new pathway for the future of Singapore’s energy sector. The terminal began operations with one jetty, two LNG storage tanks and an initial send-out capacity of around 3.5 Mtpa. By early 2014, the second jetty and third storage tank were completed, together with additional regasification facilities, raising the send-out capacity to around 6 Mtpa. When Prime Minister Lee Hsien Loong officiated at the opening of the terminal on 25 February 2014, he emphasised:

“ We can import, with this LNG terminal, much more natural gas from global markets, including from anywhere in the world. Some of our gas is coming from Trinidad & Tobago, and it is hard to imagine a source further away than that.”

He added: “ And because there are more suppliers vying for our business, we can obtain more competitive prices. And with more gas available, and new generation capacity entering the market, electricity generation becomes more competitive, which will benefit consumers. I t is a milestone in Singapore’s energy journey.”

SLNG Celebrates A Decade of Energising Possibilities Together

Looking back, Mr Bob Tan, SLNG’s first Chairman, shared his pride in the organisation’s journey: “ I am pleased to note that SLNG has successfully built on its throughput services, since commercial production, to include other related offerings such as gassing-up and cooldown, storage and reload, transhipment, breakbulk, LNG bunkering and truck loading services. As SLNG celebrates its 10th anniversary, I wish it every success, as it expands further and helps position Singapore as a regional LNG trading hub and further grow the LNG ecosystem.”

Mr Bob Tan Former Chairman Singapore LNG Corporation (2010 – 2018)

Paving The Way For The Energy Transition

I am delighted to be part of the SLNG story. When we started the project, the priority was to get the terminal constructed on schedule, within budget and with a 100 per cent safety record. This was successfully achieved by a great team of people, both within and outside SLNG, working together.

The SLNG Terminal began its commercial operations with one jetty, two LNG storage tanks and an initial send-out capacity of about 3.5 Mtpa.

SLNG Celebrates A Decade of Energising Possibilities Together

CH AP T E R

T H RE E

F RTIFYING THE PATH & PUSHING BOUNDAR ES 2 0 14

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B E CO M I N G A WO RL D -CL A SS TERMINAL O P E R AT O R LIKE any start-up, the terminal faced

some teething issues in its earliest days. SLNG focused its efforts then primarily on improving safety and reliability to meet the high standards required of it and to achieve operational stability. For example, the terminal experienced a number of unplanned gas supply interruptions in the first couple of years of operations. To address this, SLNG conducted a comprehensive study to identify the terminal’s single point of failure, and introduced an N+1 operating philosophy, such that if one equipment fails, it would not have a significant impact on the gas supply.

SLNG Celebrates A Decade of Energising Possibilities Together

SLNG’s safety and reliability improvements have included checking all similar equipment if one is found to have faults.

Embarking on a journey of continuous improvements, SLNG developed processes, procedures and programmes to bring the terminal towards higher and higher standards of safety, reliability and operational excellence. For instance, it developed a reliability excellence programme that tracked each piece of equipment’s condition more closely – not just its “fitness” as a whole, but the state of its individual components as well. SLNG also reviewed past incidents and near-misses to pinpoint ways to further strengthen the terminal’s inspection and maintenance regime. This included casting a 42

Paving The Way For The Energy Transition

Its emphasis on manpower capability building and inculcating a mindset for operational excellence has paid off.

wider net during checks, where all similar equipment are inspected if one is found to have faults. It also embraced operations abnormality reporting to flag and investigate warning signs earlier. Investments in automation and digitalisation, including predictive maintenance analytics to assess equipment’s health, have reaped more dividends in reliability over the years. Similarly, SLNG’s continuous emphasis on manpower capability building, and inculcating a mindset for operational excellence in its staff, have also paid off.

One million continuous operational man-hours without a recordable incident in June 2018.

From having nine and 11 gas supply disruptions in FY2013 and FY2014 respectively, SLNG recorded only one such incident in FY2015 and subsequently achieved zero incidents for the first time, in FY2018; and for most years thereafter. On the safety front, SLNG reached one million continuous operational man-hours without a recordable incident, for the first time in June 2018. As Mr John Ng, who was SLNG’s Chief

Mr John Ng Former Chief Executive Officer Singapore LNG Corporation (2014 – 2018)

Executive Officer from 2014 to 2018, pointed out: “ When I joined SLNG, the terminal was something very new and there were concerns that so much energy was converged in one location. It was also recognised that the terminal would potentially have to support all of Singapore’s energy needs, so operationalising it in such a way that it would have the highest level of reliability was also important. Hence, safety, reliability, security and availability were my key focus areas at that time.”

It was anticipated, even back then, that the Singapore power sector will increasingly shift towards relying more on LNG over piped natural gas. As such, it will become increasingly crucial that the LNG terminal is of world-class standards. I am proud to say that SLNG has done very well, and is today a world-class LNG terminal operator.

SLNG Celebrates A Decade of Energising Possibilities Together

Since commencing operations, SLNG has expanded its portfolio of services to include Gassing-up and Cool-down, Storage & Reload, Transhipment, and more.

Paving The Way For The Energy Transition

FROM E XPA N D I N G S ERVIC E S… AT the same time, SLNG was eager

to start pushing boundaries and optimising its assets. It began looking into enhancing its service offerings almost immediately after commencing commercial operations, and started with its first Gassing-up and Cool-down (GUCD) service carried out in September 2013.

at a later date for re-export to other destinations. Coupled with the fact that the SLNG Terminal can accommodate a wide range of ships of different sizes, the customer is able to break the cargo into smaller parcels for delivery to the region using small- or mid-sized LNG carriers.

The GUCD service taps synergistically into Singapore’s position as a major ship repair hub to allow LNG carriers that are newly-built, fresh out of the dry dock, or entirely emptied at their previous discharge ports to cool their cargo tanks from ambient to cryogenic temperatures, before proceeding to load their next LNG cargo.

SLNG also introduced Transhipment services, which allow LNG cargoes to be transferred directly between two LNG carriers berthed at the terminal, without flowing through the terminal’s LNG storage tanks. When SLNG carried out its first transhipment operations in December 2017, it was believed to be the first such operation done in Southeast Asia.

To facilitate the physical trading of LNG in the secondary market, SLNG initiated its Storage and Reload (S&R) service in 2014, which allows a customer to unload and store LNG cargoes at the terminal, and reload them

In 2018, Singapore was ranked second worldwide in terms of LNG re-export volumes, according to the International Group of Liquefied Natural Gas Importers’ (GIIGNL’s) 2019 annual report.

The first

Gassing-up and Cooldown (GUCD) service was carried out in September 2013.

SLNG Celebrates A Decade of Energising Possibilities Together

…T O RAM PIN G UP CAPAC IT Y… AS SLNG added more services,

it also increased the terminal’s handling capacities and capabilities to better serve the country’s needs and hone its potential as a trading hub. Between 2014 and 2018, SLNG implemented the terminal’s phase three expansion plan, awarding the approximately S$700 million contract for the engineering, procurement and construction project to Samsung C&T after a rigorous tender and evaluation process. 46

Paving The Way For The Energy Transition

The third phase of construction added a fourth storage tank and more regasification infrastructure to boost the terminal’s gas supply capacity to the current annualised average of 9 Mtpa. Standing at 260,000 cubic metres, the fourth tank is amongst the largest in the world today. When completed in 2018, it raised the terminal’s total storage capacity to 800,000 cubic metres. It can also receive a full cargo load from a Q-Max carrier, which is currently the world’s largest LNG carrier.

The terminal’s masterplan has room for up to four more LNG storage tanks and a third jetty if market demand calls for them.

SLNG maintained its excellent safety record throughout the phase three construction. Accumulating across all phases of construction thus far, SLNG has logged some 28 million man-hours of construction work, without a lost-time incident. Designed for the future, the terminal’s masterplan allows up to four more LNG storage tanks and a third jetty to be installed, depending on market demand.

TK004

260,000 cubic metres

The fourth storage tank is amongst the largest in the world today.

SLNG Celebrates A Decade of Energising Possibilities Together

The SLNG Terminal’s LNG truck loading facility, the first in SIngapore.

(Above left and right) The SLNG Terminal carried out the first cargo reload for the FueLNG Bellina, Singapore’s first LNG bunkering vessel, in March 2021.

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… A N D FACI L I TAT I N G SM A L L-S CA L E L N G DE LIV E RI E S LOOKING at the needs of the wider

LNG market then, SLNG turned its attention towards small-scale LNG deliveries. In April 2017, the company collaborated with the Maritime and Port Authority of Singapore (MPA) to jointly launch the nation’s first LNG truck loading facility, situated within the terminal. At the facility, trucks can take on small amounts of LNG and transport them overland to just about any location in Singapore where the fuel may be needed, such as industrial plants that can use natural gas for furnaces and burners but are not connected to the gas pipeline network. The trucks can also deliver LNG to places in the port where it can be loaded onto ships for use as fuel, otherwise known as truck-to-ship LNG bunkering. Just two months after the facility’s unveiling, SLNG executed its first small-scale LNG gassing-up, cooldown and reload operation at the terminal, to test its ability to service smaller-volume trades and LNG bunkering. The operation was conducted on the Cardissa, a newly-built LNG bunker vessel with a capacity of 6,500 cubic metres, at the terminal’s secondary jetty. The jetty was designed for LNG vessels

with a capacity ranging from 60,000 to 265,000 cubic metres, and prior to the Cardissa, the smallest vessel that it had received was about 65,000 cubic metres. The success of the Cardissa operation prompted SLNG to proceed with plans to modify the secondary jetty to support smallscale LNG trading and LNG bunkering even more efficiently. The changes included installing a new marine loading arm and gangway catered for small LNG ships, as well as set-ups for securing them at the jetty. The new Small-Scale LNG Facility, which debuted in February 2019, can receive and reload small LNG ships of between 2,000 and 10,000 cubic metres in capacity, and has helped to spur the development of LNG bunkering in the Port of Singapore. Soon after the facility’s opening, Pavilion Energy carried out the first commercial ship-to-ship LNG bunkering in the port, which involved reloading 2,000 cubic metres of LNG from a small-scale tanker to a receiving heavy-lift commercial vessel. In March 2021, the terminal carried out the first cargo reload for the FueLNG Bellina, Singapore’s first LNG bunkering vessel.

SLNG Celebrates A Decade of Energising Possibilities Together

H ARNE SSING COM PE TITIO N 5 LNG IMPORT LICENSEES

With EMA’s Competitive Licensing Framework launched in 2014, Singapore can continue to access competitively-priced and reliable supplies of LNG.

WITH the terminal in operation and

the terms of BG’s contract almost fulfilled, EMA took steps to move to a more robust LNG import framework that would enable Singapore to continue to access competitivelypriced and reliable supplies of LNG. After two rounds of consultation with industry stakeholders, and taking on board their feedback, the authority finalised a Competitive Licensing Framework and introduced it in 2014. Briefly, this framework takes a ‘tranche-by-tranche’ approach towards LNG procurement, that includes a stringent and competitive process to select the next importer(s)

Paving The Way For The Energy Transition

to supply long- or short-term LNG. The appointed importer(s) will have the obligation to offer to all LNG buyers in Singapore. On the other hand, the framework gives gas buyers a range of choices. They can customise their own gas supply portfolio and pursue their own gas contract negotiations and price discovery. The framework does not pre-determine the number of importers appointed each time. EMA can select one or more new importers, or permit existing incumbent(s) to grow beyond their franchise. With this flexibility,

Singapore can keep its options open. It can seize opportunities that arise from changing global market conditions and the emergence of new suppliers who offer better terms. Singapore currently has five LNG import licensees – Shell Gas Marketing Pte Ltd (formerly BG Singapore Gas Marketing Pte Ltd), Shell Eastern Trading (Pte) Ltd, Pavilion Energy Singapore Pte Ltd, ExxonMobil LNG Asia Pacific and Sembcorp Fuels (Singapore) Pte Ltd.

Mr Ng Wai Choong Former Chief Executive Energy Market Authority (2015 – 2018)

Reflecting on the Singapore LNG ecosystem’s growth, Mr Ng Wai Choong, who was EMA’s Chief Executive from 2015 to 2018, recollected: “ During my tenure, we took further steps to expand the role of LNG in enhancing Singapore’s energy security and reliability. These included the appointment of LNG importers Pavilion Energy Singapore and Shell Eastern Trading. We also opened the gas market to spot LNG imports to inject greater competition and further diversify Singapore’s gas supply.”

SLNG has been a valuable partner throughout this journey. I always found the SLNG team to be very professional, progressive and collaborative. SLNG’s close partnership has paved the way for Singapore to be an LNG trading and bunkering hub, with reliable, flexible and competitively-priced LNG supplies. My heartiest congratulations to SLNG on its 10th anniversary!

SLNG Celebrates A Decade of Energising Possibilities Together

Paving The Way For The Energy Transition

C H AP T E R

FO U R

RAMPING P FOR THE ENERGY TRANSITI N 2 0 19

–

2 0 2 3

SLNG Celebrates A Decade of Energising Possibilities Together

Paving The Way For The Energy Transition

A N E W V I S ION FOR SLNG TODAY, SLNG fulfils about 50 per cent of

Singapore’s total natural gas demand, and has enough capacity to support all of the country’s power sector gas needs, based on current demand projection. Even so, it is not resting on its laurels. In 2020, it developed a five-year strategic roadmap to create new value by growing the LNG ecosystem in Singapore and beyond. This includes working with partners to further develop the throughput and LNG bunkering business in Singapore, facilitating more LNG trading, embarking on digital and business transformation projects for greater efficiency and agility, and more. To better align with this new phase of growth and development, SLNG embarked on an exercise to review and update its branding and, in the process, recast its vision and values and launched a new logo.

Facilitate more LNG trading, bunkering, and other activities.

Further enhance throughput services and energy security.

Embark on digitalisation and business transformation projects.

SLNG Celebrates A Decade of Energising Possibilities Together

SLNG’s new vision – Catalysing New Possibilities in the Energy Transition – reflects its broader ambition to not just meet but exceed its energy security mandate; advance the growth of the LNG ecosystem; and facilitate developments and innovations in sustainable new energy. Driving the fulfilment of this vision is a set of new core values – ForwardLooking, Collaborative, Courageous, Engaging, Enterprising and Energising.

Mr Tan Soo Koong Chief Executive Officer Singapore LNG Corporation (2019 – Present)

Paving The Way For The Energy Transition

Explaining the impetus for the development, Mr Tan Soo Koong, current Chief Executive Officer of SLNG, elaborated: “ When I joined in 2019, we took a pause to consider more deeply about what’s next for SLNG. At that time the LNG adoption for the industry – not just for power generation but for bunkering and other areas – was developing very rapidly, so we needed to move beyond the energy security mandate to support and defend Singapore as an energy hub.”

Firstly, we needed to continue to ensure energy security. This is the primary driving force of SLNG, and I am very proud that we can serve our nation in this important capacity. Secondly, we needed to grow the LNG business and make full use of our strategic assets. Thirdly, we needed to confront and address the changing energy landscape. We are well aware that while LNG is the cleanest fossil fuel, the ultimate goal for the future is to transition towards cleaner, more sustainable and even renewable fuels; and SLNG can and should play a role in this transition. Finally, overarching all of this, we needed to boost the enabling imperatives to ensure that we have the right skillsets and digital platforms to bring SLNG forward.

CATALYSING NEW POSSIBILITIES IN THE ENERGY TRANSITION VALUES TO DRIVE A VISION With the future in mind, SLNG recast its core values to align with its new phase of growth and development. The new values are:

FORWARD-LOOKING Seeing what’s possible – focusing on opportunities and solutions rather than obstacles.

ENGAGING ENERGISING Bringing openness, ideas and passion to relationships, so that others are motivated to do more.

ENTERPRISING

Connecting and reaching out to share ideas and solutions.

COURAGEOUS Resolve and conviction about our strategy for the future; committed to doing the right thing now.

Willingness to try new things and to go the extra mile to get things done.

COLLABORATIVE Teamwork and partnerships for win-win outcomes.

SLNG Celebrates A Decade of Energising Possibilities Together

GROWING S TRO NGE R T O GE TH E R PEOPLE development has always

been high on SLNG’s list of priorities. Starting from even before terminal operations began, SLNG has been investing heavily in building up core capabilities, with employees learning the ropes and crucial skills through training stints with established terminals overseas and on-the-job training. So, as SLNG rolled out its five-year plan, it sought to bring its staff along on the journey by continuing to place emphasis on learning and development to equip them with the right skills, tools and competencies. In 2020, it carried out a structural review of each of its business groups to understand the skills and knowledge that it must have to support its five-year roadmap. It also began an annual assessment of its staff’s skillsets to gauge against the future capabilities needed, so that it can take timely action to bridge any gaps. In particular, SLNG embarked on a Technicians Qualification project in June 2020, aimed at assessing and eventually qualifying its existing technicians and supervisors as

Paving The Way For The Energy Transition

competent, through a structured process. Its operations, human resource and learning & development teams worked together to curate a bespoke in-house competency-based assessment framework, underpinned by a learning roadmap that identifies the specific training required for each technician and supervisor grade. The assessments were also conducted in-house, leveraging on the experience of SLNG’s trained assessors who were further put through robust training from an established third party. The qualification process was successfully completed for relevant existing employees in November 2022, and has become a required process for new joiners moving forward. Technical competencies aside, every employee has a personalised, individual development plan that is reviewed every year in conversation with their reporting manager, taking into account their progress, professional interests and career goals. SLNG also implemented a talent development programme to identify high-potential employees, groom them for leadership positions and track their development.

SLNG’s investments in building up core capabilities have included training stints with established overseas terminals and on-the-job training.

It assesses its staff’s skillsets to gauge against future capabilities needed, so it can bridge any gaps.

Each employee has a personalised, individual development plan that is reviewed annually.

SLNG Celebrates A Decade of Energising Possibilities Together

Beyond these forward-looking stances, which ensure that SLNG continues to be competitive and future-ready, it has focused on making sure that its employees feel part of the organisation’s family. Efforts in this regard include setting up a Staff Welfare Committee to organise various activities for staff throughout the year to promote staff well-being and team bonding; organising quarterly townhalls and monthly birthday celebrations; and rolling out an employee engagement survey every two years to measure the extent to which staff feel engaged, energised and enabled at work.

Mr Abdul Samad General Secretary of the Union of Power & Gas Employees (2015 – Present)

The strides that SLNG has made in engaging with its employees, and helping them grow and develop, are partly attributable to its close collaborative relationship with the Union of Power & Gas Employees (UPAGE), which has been a credible partner in the Boardroom. UPAGE shares useful perspectives in industrial relations, best practices in enhancing the well-being of its members, and most importantly sentiments from SLNG’s employees on which the union may have a stronger pulse.

The relationship between SLNG and UPAGE has always been robust and respectful. SLNG is forward-looking in training its workforce, whether in the technologies of today to improve how jobs are done, or in its plans for the future. It provides proper training, and when its employees become more productive and value-added, it shares the benefits. At the same time, it has built up a local talent pool in the LNG industry, and continues to recruit and train locals. This is important for such critical infrastructure, and SLNG has done a responsible job on this.

Paving The Way For The Energy Transition

A mural at the SLNG Terminal serving as a reminder of the company’s commitment to sustainability.

A FO C US O N SUS TA IN A B I L I T Y WITH the global fight against

climate change intensifying, SLNG redoubled its commitment to reduce carbon emissions and promote sustainability. In this regard, the company has set a target to materially reduce its carbon emissions by 30 per cent by 2030 and achieve carbon neutrality by 2050. This commitment is not just a corporate slogan; it is embedded in SLNG’s Environmental, Social and Governance (ESG) framework, which guides the company’s operations and long-term strategy.

Enhancing energy efficiency is one of the key strategies to reduce carbon emissions, and one of the first steps that SLNG took was to install a solar power system spanning the rooftops of several of its terminal’s buildings, in 2020. This system is capable of producing about 700 megawatt hours of renewable energy, nearly 200 times the yearly household electricity consumption of a four-room public flat in Singapore; and is able to offset about 300 tonnes of carbon dioxide emissions annually.

Produces about

700 megawatt

hours of renewable energy.

Averts about

300 tonnes of carbon dioxide.

SLNG Celebrates A Decade of Energising Possibilities Together

SLNG has installed solar panels on several buildings in its terminal, as part of its sustainability efforts.

In 2021, SLNG finalised a fiveyear carbon reduction roadmap to reduce its terminal’s direct and indirect emissions. The roadmap sets out yearly energy targets and specific measures to achieve them, such as transitioning the terminal’s lighting to more energy-efficient ones, and digitalising its energy management system to pinpoint and rectify inefficiencies. An internal energy efficiency team was appointed to closely monitor the terminal’s total energy usage and spearhead improvements. SLNG is addressing indirect emissions and social issues, such as anti-corruption and human rights, in its supply chain by adding ESG considerations in its procurement policies and processes. As a start, it has incorporated energy efficiency criteria in supplier assessments. 62

Paving The Way For The Energy Transition

Over the next few years, SLNG will survey its direct suppliers to determine their ability to meet its ESG goals, implement a supplier code of conduct that covers core ESG elements, and embed ESG credentials and criteria in its tenders as part of the appraisal process. Taking an additional step to clearly demonstrate its commitment to transparency and accountability, SLNG has been voluntarily publishing an annual sustainability report, prepared in line with Global Reporting Initiative Sustainability Reporting Standards, since 2021.

T H E COVID- 19 CH ALLE N G E AS the saying goes, the best laid

plans of mice and men often go awry. The COVID-19 pandemic struck in late 2019, wreaking havoc across the world and hitting Singapore in early 2020. SLNG, classed as an essential service, rose quickly and effectively to the challenge. Management and staff worked closely together to continuously monitor the situation and roll out a multitude of measures to protect employees’ health and safeguard operations. Apart from adhering closely to the Singapore government’s guidelines and advisories, such as introducing safe distancing, temperature screening and split team arrangements, and having employees who could work from home do so, SLNG went above and beyond to ensure that operations remained undisrupted throughout the pandemic. Some of the initiatives included arranging door-to-door transport for those based at the terminal to minimise exposure on public transport; increasing the frequency and thoroughness of cleaning and disinfection at the terminal and its headquarters; providing staff with hand sanitisers and masks; conducting periodical pulse check surveys to keep an eye on their

During the COVID-19 pandemic, SLNG’s operations team kept the terminal running around the clock, without disruption.

well-being and potential stressors; bringing in an external agency to provide counselling to those who need it; and distributing care packages to boost morale. To minimise the risk of COVID-19 infections within the terminal, the operations team came up with creative solutions to keep essential teams separated. This included implementing a colour-coding system so that personnel from different teams can easily identify one another and avoid contact, and only personnel from the same team would touch the same common surfaces (eg door handles) based on the coloured tape on them. SLNG Celebrates A Decade of Energising Possibilities Together

An alternative system was also devised to carry out the required handover briefings between two shift teams, without the incoming and outgoing teams being in the same room at the same time, while ensuring that at least one person had sight of the terminal’s operations at all times.

on digital technology to enable the vendors to ‘see’ the problem and provide guidance remotely. Over time, the team acquired the skills and experience needed to perform critical equipment maintenance by themselves, hence becoming self-reliant and reducing dependence on the vendors.

Not only did the COVID-19 pandemic bring SLNG’s innovative and resilient spirit to the fore, it also brought about some unexpected benefits. With countries imposing lockdowns, SLNG could not rely on its overseas vendors to send specialists to maintain and repair the equipment that they had installed at the terminal. Its operations team learnt to carry out these tasks themselves, initially by leveraging

CEO Mr Tan shared: “ COVID brought about a lot of new learnings for SLNG. When we needed the experts’ help and they could not fly in, we used digital means to tap their expertise. This actually helped our people to elevate their skills and competency levels, and now our staff are contributing at a higher level and we have become less dependent on external parties. This is good for the organisation and for individual employees.”

SLNG implemented a raft of measures to keep employees safe during the COVID-19 pandemic, including following the government’s guidelines and advisories, such as safe distancing and split-team arrangements.

Paving The Way For The Energy Transition

This mural located in front of the terminal’s Main Control Room reflects SLNG’s mandate to support Singapore’s energy security.

STE PPING U P T O SUP PO RT EN E RGY SEC URIT Y AS the pandemic began to ease, soaring

energy demand led to LNG shortages worldwide and higher electricity prices. SLNG stepped up to work side by side with EMA to help further strengthen Singapore’s energy security.

On the demand side, SLNG supported the design of the drawdown mechanism for power generation companies in Singapore to tap on the standby LNG facility when they encountered gas supply issues, so that

On EMA’s request, it took on the responsibility of procuring LNG on the spot market for immediate delivery, to make up for shortfalls in Singapore’s natural gas supply. It quickly established itself as a reputable and astute buyer, being able to consistently purchase the fuel at competitive prices despite the challenging market landscape. It also managed to charter ships on short notice for use as floating LNG storage for this additional strategic inventory.

SLNG Celebrates A Decade of Energising Possibilities Together

they can avoid interruptions to their electricity supply to consumers. Since SLNG set up the standby facility, it has also supervised and operated the drawdowns, playing a bigger role in the stability and security of Singapore’s energy sector. This facility, which became operational in late 2021, was originally slated to be temporary but has since become a permanent part of Singapore’s energy equation, given the ongoing volatility in the LNG market,

Mr Ngiam Shih Chun Chief Executive Energy Market Authority (2018 – Present)

Paving The Way For The Energy Transition

worsened by the Ukraine-Russia crisis. Calling attention to SLNG’s crucial contributions, Mr Ngiam Shih Chun, the current Chief Executive of EMA, noted: “ During the global energy crisis in 2021 and 2022, the standby LNG facility supplied gas to generation companies to address shortfalls, and this helped to stabilise our energy sector during the crisis. With energy demand expected to continue increasing, SLNG will continue to be a critical stakeholder in our energy infrastructure.”

SLNG has grown rapidly over the years. Even as it has expanded its capacity, capabilities and range of services, it has maintained high levels of safety, reliability and efficiency. With a partnership built on shared goals, SLNG and EMA will continue to ensure Singapore’s energy resilience, while also fostering an environment that encourages innovation and sustainability.

To help stabilise Singapore’s energy sector, SLNG chartered ships to serve as floating LNG storage for additional inventory.

SLNG Celebrates A Decade of Energising Possibilities Together

C H A P T E R

FI VE

F RGING AHEAD TO THE NEXT DECADE AND BEY ND

Paving The Way For The Energy Transition

SLNG Celebrates A Decade of Energising Possibilities Together

Paving The Way For The Energy Transition

NET ZERO 2050

carbon emissions goals

S I N G A P O RE’S F U T U RE E N E RGY L A N D S CA P E MOVING forward, Singapore’s energy future

is bright. The government is backing LNG as the country’s transition fuel of choice as it works towards achieving its carbon emissions goals, which include reaching net zero emissions by 2050. It is also inking partnerships to encourage the LNG sector’s growth locally and beyond. In 2022, it signed a Memorandum of Cooperation (MOC) on LNG cooperation and energy transitions with Japan, building on an earlier MOC on low emissions solutions. The new MOC will expand the two nations’ collaborations to include promoting investments across the LNG value chain, discussing LNG’s use as a transition fuel, and knowledge sharing on measuring, reporting and verifying greenhouse gas emissions in LNG supply chains.

SLNG Celebrates A Decade of Energising Possibilities Together

Among other joint efforts, Singapore is also working with Qatar, the world’s top LNG exporter, to strengthen long-term LNG supply chains, boost technical cooperation and exchange knowledge on carbon capture and storage. As Minister for Manpower and Second Minister for Trade and Industry Dr Tan See Leng stated in underlining the path for Singapore’s energy future:

Dr Tan See Leng Minister for Manpower and Second Minister for Trade and Industry

“ Natural gas is the primary fuel for power generation in Singapore and is also the cleanest fossil fuel. It will continue to be essential to Singapore even as we transition to a net-zero future by 2050. SLNG plays a vital role in Singapore’s energy security as the owner, developer and operator of Singapore’s only open-access, multi-user LNG Terminal. It enables Singapore to access a diversity of natural gas sources across the world.”

Beyond energy security, SLNG’s development of new services and capabilities, such as LNG bunkering and storage and reload services, has helped establish Singapore as one of the largest LNG trading hubs in the world. I congratulate SLNG on 10 years of successful operations. SLNG is a shining example of Singapore’s commitment to energy security and innovation. I look forward to SLNG’s future contributions to Singapore’s decarbonisation journey.

Paving The Way For The Energy Transition

The Singapore government has backed LNG as the country’s transition fuel of choice as it works towards achieving its carbon emissions goals.

SLNG Celebrates A Decade of Energising Possibilities Together

GEARING UP F O R LNG G ROW T H WITH natural gas being one of

EMA’s ‘four switches’ to diversify Singapore’s energy sources, SLNG will continue to play an essential role in Singapore’s energy security for years to come. It is anticipated that LNG will grow to take up at least 70 per cent of the country’s natural gas demand (over piped natural gas), in the not too distant future. To further enhance Singapore’s energy security and better support the growth of the LNG ecosystem, SLNG is looking into expanding its terminal infrastructure and capacity over the next few years. Among its plans is to increase the available LNG storage capacity to serve rising demand for the fuel and broaden the options for LNG trading and other businesses.

NATURAL GAS

SOLAR

The four switches of Singapore’s energy future.

Paving The Way For The Energy Transition

Several options are being explored in this regard, including bringing in a Floating Storage and Regasification Unit (FSRU) which would be a relatively easier to implement option; and/or building additional storage tanks at the terminal that would be “future-ready” - equipped with membrane technology that provides the flexibility for the tanks to be used to store other greener fuels like ammonia. There are also other expansion projects in the pipeline, such as building out the tertiary jetty to enable more LNG bunkering and small-scale reload activities; and constructing a more permanent and upgraded LNG truck loading facility that can accommodate more trucks and operate more efficiently, with better equipment.

REGIONAL POWER GRIDS

EMERGING LOW CARBON ALTERNATIVES

SLNG will continue to play a vital role in Singapore’s energy security for years to come.

Above Ground Storage Tank: Full Containment and “FUTURE READY” Cryogenic Membrane Comparison of Technologies.

Roof (reinforced concrete)

Full Containment Technology Insulated suspended deck Outer Tank: Pre-stressed (AI + Fiberglass) concrete (5000 tonnes steel reinforcements + 28,000m3 concrete)

Currugated Stainless Steel Membrane Primary Barrier Plywood Plyurethane Foam Triplex Secondary Barrier (TPS)

Perlite

Insulating Panel

Plyurethane Foam

9% Nickel Inner Tank (3000 tonnes inc. CS liner) Bottom Insulation Slab (reinforced concrete) Slab Heating System

Membrane Technology

Plywood Anchoring Elements; Mastic & Studs Concrete wall covered with moisture barrier

SLNG Celebrates A Decade of Energising Possibilities Together

SLNG is supporting Singapore’s efforts to study low-carbon fuel alternatives such as ammonia.

Paving The Way For The Energy Transition

FO ST E RI N G A M ULT I-F U E L F U T U RE ALONGSIDE these LNG-related

projects, SLNG is supporting Singapore’s ventures into ammonia and other low-carbon fuel alternatives. Ammonia, made up of nitrogen and hydrogen, is already widely produced and used as a fertiliser. It holds promise as a green fuel as it does not contain carbon and can be used to transport hydrogen, another potential green fuel, cost-efficiently. SLNG’s expertise in LNG is translatable to ammonia as the two substances have similarities, particularly in handling and storage. They are both fuels that must be stored and managed at cryogenic conditions, albeit at a higher and less energy-intensive -33 degrees Celsius for ammonia, compared to LNG’s -161 degrees Celsius.

In 2022, when EMA and MPA invited interested parties to submit proposals under an Expression of Interest to build, own and operate an end-to-end low- or zero-carbon ammonia power generation and bunkering solution on Jurong Island, SLNG participated in the call. By contributing its experience and expertise, it could enable Singapore to start adopting ammonia as a zero-carbon fuel by as early as 2027, through a pilot ammonia terminal, jetty and bunkering infrastructure, extending its track record in cryogenic systems and storage to help Singapore in its energy transition and energy security.

SLNG Celebrates A Decade of Energising Possibilities Together

H ARNE SSING COLD E N E RGY TO support Singapore’s energy

transition and low-carbon ambition, SLNG is also looking into harnessing the cold energy released from its terminal’s operations. Cold energy, if harnessed well, can be a substitute for applications that require refrigeration systems. Compared with these systems, the two-pronged benefits of utilising cold energy are one, a significantly lower capital and operational expenditure; and two, the elimination of Scope 2 emissions. Today, cold energy is applied in several applications such as air separation units and cryogenic power generation. SLNG intends to prioritise its available cold energy to support Singapore’s energy, chemicals and maritime sectors. The energy can potentially be used to liquefy carbon dioxide captured from these sectors, which could then eventually be sequestered or utilised in other ways. The company is hopeful that in time to come, it can support both existing emitters as well as help advance the development of low-carbon emissions technologies and applications, via the use of its cold energy.

Paving The Way For The Energy Transition

Cold energy from SLNG’s terminal operations could be used to support carbon capture and storage efforts.

The ice, forming on the outside of certain equipment during operations, hints at the amount of cold energy that could be harnessed from the terminal.

SLNG Celebrates A Decade of Energising Possibilities Together

From SLNG’s first LNG storage tank to its latest developments, it has contributed to Singapore’s energy journey. It is stepping up its efforts for the country’s energy transition.

Paving The Way For The Energy Transition

TH E ROA D AH E A D AS a pioneer of Singapore’s

LNG industry, boldly thrashing out a path where there was not one before, the first 10 years of SLNG’s operations have been fraught with difficulties. By working as a team and leveraging on diverse talents, it has overcome these obstacles one by one, making the journey more fulfiling, and the achievements along the way sweeter. With the swiftly changing energy landscape, driven by a global fervour to expedite the energy transition, the next 10 years could be even more challenging and exciting for SLNG.

As SLNG’s CEO Mr Tan articulated, “ Where will SLNG be in the next five to 10 years? What can SLNG do, besides LNG? These are questions that have kept me awake at night sometimes. I see LNG continuing to be a staple component in Singapore’s energy mix, for a long time to come. I also see LNG contributing in a big way to the decarbonisation of Jurong Island and, in doing so, for Singapore as a whole as well. And I believe SLNG will play a leading role in enabling new sources of clean energy in Singapore – such as ammonia and hydrogen – in a secure, safe and sustainable manner. But whichever direction the energy transition takes, I believe that SLNG has the talents, agility, spirit and fortitude to keep moving forward. SLNG will continue to Catalyse New Possibilities in the Energy Transition, for a long, long time.”

SLNG Celebrates A Decade of Energising Possibilities Together

POWERING THE SLNG STORY THE WAY FORWARD

Over the past decade, the SLNG Terminal has transformed Singapore’s energy ecosystem, boosting its energy security and enabling it to step forward as a regional LNG trading hub. Here’s a look at some of its key milestones to date.

2009

2010

2012

30 June Singapore LNG Corporation Pte Ltd (SLNG) is incorporated to develop, build, own and operate Singapore’s first LNG terminal.

31 March SLNG holds a groundbreaking ceremony to mark the start of the terminal’s construction, during which the first Terminal Use Agreement (TUA) is signed between SLNG and BG Singapore Gas Marketing.

24 October The Singapore government announces the decision to build a fourth LNG storage tank and associated facilities, to further boost the terminal’s capacity.

2 November The Singapore government announces the decision to accelerate the terminal’s expansion with the construction of a third LNG storage tank. 82

Paving The Way For The Energy Transition

2013

2014

2016

27 March The terminal receives its first LNG cargo for its commissioning.

25 February Prime Minister Lee Hsien Loong officially opens the SLNG Terminal.

7 May The terminal welcomes its first commercial LNG cargo and begins commercial operations.

1 April The terminal commissions its Gas Engine Generator, further enhancing its ability to operate without disruption.

28 July The first LNG cargo under SLNG’s 23 June Storage & Reload service is delivered. SLNG signs its first two-year Storage & Reload service agreement.

29 September The terminal performs its first vessel Gassing-Up and CoolDown (GUCD) operation. SLNG Celebrates A Decade of Energising Possibilities Together

2017

2018

2019

2020

29 January SLNG signs TUAs with newly licensed aggregators, Pavilion Energy Singapore and Shell Eastern Trading.

27 March The terminal’s Tank 4, one of the largest LNG tanks in the world, receives provisional acceptance.

13 February Modifications to the terminal’s secondary jetty are completed, enabling it to reload small-scale LNG ships.

10 March SLNG signs its first five-year Storage & Reload service agreement.

12 April SLNG and MPA jointly launch Singapore’s first LNG Truck Loading Facility.

29 May The first Spot Throughput cargo is delivered to the terminal.

7 December The terminal carries out its first jetty-to-jetty LNG transfer, believed to be the first such operation performed in Southeast Asia.

1 June SLNG achieves one million continuous operational man-hours without a recordable incident.

Paving The Way For The Energy Transition

30 March SLNG signs a Memorandum Of Understanding (MOU) with four local and two Japanese companies to study ways to utilise hydrogen as a low-carbon alternative energy source. 28 November The terminal crosses the 100th GUCD mark. 29 December The terminal completes the installation of a rooftop solar power system that is able to offset about 300 tonnes of carbon dioxide emissions annually.

2021

2022

2023

23 March The terminal performs the first cargo reload for the FueLNG Bellina, Singapore’s first LNG bunkering vessel.

24 March The first LNG Floating Storage Unit (FSU) arrives at the terminal to provide additional inventory storage for the SLF.

28 July LNG flows through the terminal reach 6 million tonnes per annum (Mtpa) for the first time in SLNG’s operating history.

27 August SLNG concludes TUAs with newly licensed aggregators, ExxonMobil LNG Asia Pacific and Sembcorp Fuels (Singapore).

13 April Inventory storage for the SLF is further boosted with the arrival of the first LNG Floating Storage and Regasification Unit (FSRU) at the terminal. The MOL FSRU Challenger (later renamed Bauhinia Spirit) is the world’s largest FSRU.

5 November SLNG operationalises the Standby LNG Facility (SLF) developed with EMA, to address LNG supply volatility in the market. 29 November SLNG signs an MOU with Linde Gas Singapore to explore the feasibility and development of a carbon dioxide liquefaction and storage facility.

25 October The Singapore government announces the institutionalisation of the SLF, making it a permanent feature of Singapore’s energy market.

SLNG Celebrates A Decade of Energising Possibilities Together

AF TE RWO RD As SLNG looks to the future, it is pushing ahead in decarbonisation, greener energy sources, capability and capacity building and more, equipping itself to go beyond its energy security mandate to support and accelerate Singapore’s energy transition. As it marks 10 years of commercial operations, its new journey is just beginning. SLNG was set up for the purpose of enhancing Singapore’s energy security, and we are proud to have served the nation over the past 10 years. With the changes in the energy landscape, we are stepping up to play a bigger role, to contribute our concepts and ideas and develop them to help pave the way for Singapore’s energy transition. We are learning new skills and investing in new technologies. With the vision of the Singapore government, and working together, we can shape a greater and greener energy future for Singapore. Mr Tan Soo Koong Chief Executive Officer Singapore LNG Corporation

Paving The Way For The Energy Transition

This artwork, painted by Mr Raymond Lau, a Singaporean living with Tourette Syndrome, portrays the important role that the SLNG Terminal plays to support Singapore’s energy security. SLNG collaborated with ART:DIS, a non-profit that champions opportunities for persons with disabilities in the arts, to commission this painting as part of its 10th anniversary celebrations.

SLNG Celebrates A Decade of Energising Possibilities Together

ACK N OWL E D G E M E N T S SLNG would like to thank all its stakeholders, particularly the Energy Market Authority, customers, partners and end-users for their invaluable support through the years. It would also like to thank its past and present board members, senior management and staff, whose contributions have brought SLNG to where it is today.

Paving The Way For The Energy Transition

PUBLISHED BY

Singapore LNG Corporation Pte Ltd 991G Alexandra Road, #03-29C Singapore 119975

All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher. Every effort has been made to trace all sources and copyright holders of news articles, figures and information in this book before publication. If any have been inadvertently overlooked, The Singapore LNG Corporation Pte Ltd will ensure that full credit is given at the earliest opportunity.

PROJECT TEAM

Juniper Chua Simon Ang Celestine Chan Sarina Binte Mohamed Diah

ISBN 978-981-18-8371-2 (Hardcover) ISBN 978-981-18-8372-9 (e-Book) To find out more, visit https://www.slng.com.sg

CONTENT CONTRIBUTORS

PROJECT MANAGEMENT

Ahmad Izwan Bin Abdul Samad Rafii Ahmad Desmond Chang Michelle Eng Jinnie Kiew Jack Lim Low Ying Chun Francis Terrance Nelson James Ooi

Design, Photography and Production

Redbean De Pte Ltd WRITER

Feng Zengkun

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