The first Liquefied Natural Gas (LNG) terminal in Singapore has received its first commercial cargo, marking the start of commercial operations.

The $1.7billion terminal will give Singapore access to competitively priced gas, benefit consumers and offer more business opportunities.

At the terminal on Jurong Island, Second Minister for Trade and Industry S. Iswaran said on Tuesday: "Energy diversification is an important part of Singapore's strategy for energy security and resilience. The LNG terminal is a key infrastructure to achieve this objective.

"It will also contribute to the development of Singapore as a regional gas hub, catalyse LNG-related business opportunities and create new job opportunities for Singaporeans."

The initial throughput capacity of the terminal is 3.5 million tonnes per annum (mtpa), with two tanks.

By the end of this year (2013), a third tank, along with additional jetties and regasification facilities will be completed. The capacity will then increase to 6 mtpa.