WorleyParsons wins FEED work for expansion of Singapore LNG terminal

Singapore LNG Corp. (SLNG) awarded a front-end engineering and design (FEED) contract to WorleyParsons to define the scope of the expansion of its LNG terminal send-out and storage capacities, officials confirmed on Thursday.

The expansion plans include the installation of additional facilities to increase terminal capacity from its current 6 million tpy throughput to a new rate of 9 million tpy, as well as the construction of a fourth tank.

“The FEED project is vital as it provides the required engineering design and comprehensive scope of works that will enable SLNG to invite tenders for the engineering, procurement, and construction (EPC) contract for the construction of the new facilities, as well as develop the capital cost estimates for the expansion," said Neil McGregor, CEO of Singapore LNG.

The project officially kicked off on October 29, 2012, and is expected to be completed by early in the 2013 second quarter.

The final investment decision for the construction of the fourth LNG storage tank and its associated facilities will be made after that.

"WorleyParsons was selected following a rigorous tender process, because it offered the best overall value from among the bidding companies," McGregor said.

The design to be delivered by WorleyParsons will also explore possible future expansions, including the feasibility of a fifth and subsequent tanks.

"WorleyParsons appreciates the opportunity provided by SLNG to provide high-quality FEED services for the expansion of Singapore’s LNG terminal," said WorleyParsons CEO Andrew Wood. 

"In recent times, our team in Singapore, in collaboration with global experts, has achieved a market leader status in the design of onshore and floating LNG regasification facilities," he continued. 

"We are looking forward to bringing this experience to the fore and working closely with the SLNG team to provide a design solution which caters to the future expansion, thereby allowing SLNG to achieve its vision and business goals."

The additional tank and its associated facilities are expected further enhance Singapore’s energy security by allowing further diversification of fuel sources. The additional capacity will also allow Singapore to respond to new opportunities in global LNG markets, according to project officials.

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