* Samsung C&T beats 4 other bidders for engineering
contract
* LNG Terminal on track for early-2013 completion
* Foster Wheeler to be project management consultant
(Adds comments)
By Seng Li Peng
SINGAPORE, Feb 8 (Reuters) - South Korean builder Samsung
C&T Corp won the contract for engineering, procurement and
construction (EPC) of Singapore's first liquefied natural gas
terminal, Singapore LNG Corp Pte Ltd (SLNG) said on Monday.
The $1.05 billion project will be ready by early 2013 after
a delay due to the financial crisis when the original
consortium dropped out, and would enable Singapore to position
itself as an LNG hub, lowering its dependence on imported gas
from neighbours to feed growing demand.
The terminal will have an initial capacity of 3.5 million
tonnes per year (tpy), slightly above past projections of 3.0
million, with provisions to expand it to 6.0 million or more if
needed, said Neil McGregor, executive director of SNLG.
"There were a total of five (final) bidders for the EPC
contract. These are all seasoned LNG players," he said, without
indicating the exact value of the engineering contract, but
added it would be below $1 billion.
Foster Wheeler will be the project management consultant, he
told a news conference.
Asked if SLNG has any plans to also use LNG from the
terminal for re-export, McGregor said:
"We do not have any contracts for re-export yet. We need to
establish contacts with the LNG traders, but at least this is
the first step (towards that)."
Construction of the terminal on reclaimed land on the
city-state's oil and petrochemical hub Jurong Island, will
start in about six months, an executive from Samsung C&T said.
The completion of the LNG import terminal project is on
track for early 2013, after it was deferred by a year, McGregor
added.
Lawrence Wong, Energy Market Authority (EMA) chief
executive said about 80 percent of Singapore's power is
generated by natural gas imported via pipeline from Indonesia
and Malaysia, and the supply of gas chilled to liquid form for
sea transport would help meet incremental demand.
"Singapore's total piped gas (capacity) is currently about
6 million tonnes per annum. The piped gas will continue to run,
as we cannot suddenly switch to LNG," Wong said.
"There are still contracts to meet, but the LNG supplies
will help meet new demand."
The EMA said in 2008 that BG Group Plc had won a 20-year
exclusive contract to supply the Singapore LNG terminal,
offering the British gas producer a strong position in the
Pacific basin.
The Singapore government said last June it was taking over
development of the terminal to avoid more delays due to the
credit crunch. The EMA formed SLNG to take over the project
from a PowerGas-led consortium, which included GDF Suez.
(Editing by Ramthan Hussain)
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