Keppel, Singapore LNG team up for natural gas liquid project on Jurong Island

The extraction facility will also open up more possibilities for the larger LNG ecosystem.
The extraction facility will also open up more possibilities for the larger LNG ecosystem.ST PHOTO: KELVIN CHNG

SINGAPORE (THE BUSINESS TIMES) - Keppel Infrastructure is teaming up with Singapore LNG Corporation (SLNG) and another industry partner for the front-end engineering design of a natural gas liquids extraction facility project at the SLNG terminal on Jurong Island.

The project will allow for higher handling flexibility of liquefied natural gas (LNG) through Singapore, which will help enhance the Republic's energy security, Keppel and SLNG said in a joint statement on Wednesday (July 28).

The extraction facility will also open up more possibilities for the larger LNG ecosystem, such as the use of LNG as marine fuel, and further advances Singapore's ambition to be an LNG hub for the region.

The facility will remove heavier hydrocarbons such as ethane or propane - known as natural gas liquids - from LNG. Its design will adopt a "sustainable approach" by incorporating the use of cold energy from the SLNG terminal's operations in the extraction process, which can lead to significant carbon reduction, SLNG and Keppel said.

The natural gas liquids extracted could also be delivered to Singapore's chemicals complexes, including those on Jurong Island, for use as competitive feedstock in the manufacture of various chemical-based products.

Both parties said the project is an outcome of the JTC-led Jurong Island Circular Economy Study, which explores the utilisation of cold energy on the island.

Ms Cindy Koh, director of JTC's energy and chemicals cluster, said: "Such close industry partnerships will enable us to successfully optimise resource use on Jurong Island."

The project will also contribute to Jurong Island's transformation into a sustainable energy and chemicals park, as outlined in the Singapore Green Plan 2030, SLNG and Keppel said.

Keppel Infrastructure is a wholly owned subsidiary of Keppel Corporation. It develops energy and environmental infrastructure, including power generation assets, waste-to-energy facilities, large-scale district cooling systems, as well as NEWater and desalination plants.

Keppel Corp shares were trading up four cents, or 0.8 per cent, at $5.29 as of 9.26am on Wednesday.