Singapore aspires to be key LNG bunkering port through strict standards: minister

Singapore — Singapore aims to become a key LNG bunkering port by developing standards for storage, transportation and handling as it steps up efforts to embrace the cleaner marine fuel, trade and industry minister Chan Chun Sing said Sept 7.

Speaking at the opening session of the Gastech Virtual Summit, Chan said both the government and industry stakeholders were working toward ensuring that Singapore could make LNG a part of its bunkering sector, which would help to boost demand.

"We are working to make Singapore an attractive and trusted location for LNG bunkering, ensuring that ships calling on at our port can carry out LNG bunkering cost effectively and efficiently," he said.

"To support this, Singapore has introduced the world's first LNG bunkering standard -- TR 56 -- providing a safe, sustainable and transparent technical framework for conducting LNG bunkering operations. We have also developed a standard for storage, land transportation and handling of LNG -- TR 74 -- which was launched virtually on Sept. 4, 2020. Both standards will contribute to the efforts to ensure incident-free LNG bunkering operations," he added.

Chan said while Singapore was witnessing a growth in trading companies looking to set up shop to trade LNG out of Singapore, the government would continue to work toward strengthening its financial and legal system to ensure the country remained an attractive destination for companies.

"Singapore has been a key trading hub and location for companies like Shell. and I am happy to share that Shell has now also chosen it as their Asian hub to expand their LNG and gas derivatives trading ecosystem," Chan said, adding that this would help to boost liquidity, price transparency and spot trading volumes.

He said that the outlook for LNG demand in Southeast Asia looked promising as countries such as Vietnam, Thailand and Cambodia were looking to build more infrastructure to increase their LNG imports. In addition, Singapore's LNG imports would also grow as the country was looking to boost its share of the energy mix.

Chan added that Singapore was also exploring ways to develop cost-effective cooling technology for data centers.

"Tapping into the energy released from the terminal's regasification process, this innovation could pave the way for more sustainable and compact data centers, which is critical as demand for such infrastructure grows," Chan said.

Commenting on the outlook for global LNG demand, Chan said he expected demand to recover progressively from 2021 because of economic recovery and competitive gas prices. Asia would contribute substantially to that demand growth.