Industrial landlord JTC Corporation is studying the best way to build a vast floating oil storage platform - about the size of four football fields - after a year-long study that ended in June found the notion technically feasible.

This platform, to be built with concrete, would cost at least $180 million and boost Singapore's oil storage capacity of 4.6 million cubic m by about 7 per cent.

It can be moored anywhere, including off Jurong Island, where most petrochemical companies are located. It is environmentally friendly as well, as the platforms will allow sea water to flow freely underneath, limiting damage - if any - to the marine ecosystem.

The announcement was made by JTC's assistant chief executive officer, Mr Philip Su, at the StocExpo Asia, or Storage Terminal Operators Conference and Exhibition, yesterday.

Oil traders and companies, he said, have been clamouring for more storage space even though an additional 3.5 million cubic m is being built now, he said yesterday. This includes underground rock caverns being constructed off Jurong Island.

RELATED LINKS  BOOSTING STAGE

Industry feedback suggests that Singapore is short of at least three million cubic m of oil storage space, which would require more than 100ha of land if these facilities were built the conventional way.

But demands on available land are getting greater. About 1,200ha of the 2,700ha area of Jurong Island has already been built up and the Government plans to expand the number of companies there from 94 to 150 by 2015. Meanwhile, dormitories housing 12,000 workers on the island are also in the works.

Hence the need to develop the platforms, which can save at least 15ha of land each, and store enough oil or petrochemical products to fill a large tanker. These platforms can be built within 18 to 24 months.

Mr Su said JTC is already talking to several oil trading companies which have shown strong interest in these platforms.

The Government is expected to invest more than $1 billion on the island over the next five years.

Singapore is the world's largest oil bunkering port, as well as one of the world's largest oil trading hubs and refining centres. Last year , its total physical trade amounted to US$300 billion (S$447.3 billion), while its refinery output hit US$31 billion.

At the same event, Mr Su gave an update on the progress of the underground rock caverns off Jurong Island. Work on the first phase of the project, which costs $700 million and can store 1.47 million cubic m of oil under the sea, began in February.

That facility, which frees up about 60ha of surface land space - bigger than the whole of Bishan Park - is expected to be completed in phases starting from 2010.

Mr Su said JTC is finalising the design for the facility and expects to call a tender for the building of the tunnels, caverns and associated facilities within the next two months.

It is also shortlisting potential operators of the facility.

tanhy@sph.com.sg