Singapore LNG Corporation (SLNG) and Keppel Corporation will be collaborating with another unnamed industry party on the front end engineering design (FEED) for a national gas liquids (NGL) extraction facility at the SLNG terminal on Jurong Island.
The collaboration will be done with Keppel Energy, the wholly-owned subsidiary of Keppel Infrastructure.
The extraction facility will remove the heavier hydrocarbons such as ethane or propane (also known as NGL) from LNG.
The design of the facility will adopt a sustainable approach, specifically through incorporating the use of cold energy from the SLNG terminal’s operations in the extraction process.
The project will unlock multiple benefits across the liquefied natural gas (LNG) and chemicals value chains.
It will also allow for higher handling flexibility of LNG through Singapore, which will enhance Singapore’s energy security and open up more possibilities for the LNG eco system.
The NGL extracted could also be delivered to Singapore’s chemical complexes to be used as competitive feedstock in the manufacture of various chemical-based products.
“This project is part of SLNG’s continuing efforts to not just meet but exceed our energy security mandate; and to do so in an environmentally sustainable way. At the same time, it is also another step forward in our pursuit of our vision to catalyse new possibilities in the energy transition,” says Tan Soo Koong, CEO of SLNG.
“Together with our like-minded partners, Keppel Infrastructure is privileged and pleased to be involved and contribute towards the use of more sustainable sources of energy on Jurong Island through this FEED study. This effort is an important initiative for Keppel as we leverage our strong development capability and engineering expertise to create solutions and capture opportunities arising from the global energy transition. This is in line with Keppel’s Vision 2030, which places sustainability firmly at the core of its strategy,” says Cindy Lim, CEO of Keppel Infrastructure.
“We are watching this development closely. The NGL extraction project has the potential to increase the competitiveness and sustainability of our Chemicals industry by unlocking natural gas-based feedstock – an important energy transition fuel, and harnessing cold energy from the existing LNG regas terminal to reduce power consumption and carbon emissions respectively,” says Ow Kai Onn, vice president and head of chemicals and materials at the Singapore Economic Development Board (EDB).
“The NGL extraction project is an important milestone in our engagements on the Jurong Island Circular Economy Study. We kickstarted the conversation with SLNG and Keppel to bring together like-minded companies to create value for the Jurong Island ecosystem. This collaboration will allow us to explore how cold energy can be efficiently harnessed from the LNG terminal, further reducing carbon footprint. Such close industry partnerships will enable us to successfully optimise resource use on Jurong Island,” says Cindy Koh, director of JTC’s energy and chemicals cluster.
Shares in Keppel Corp closed flat at $5.25 on July 27.
