LPG Project in Singapore
South Korea’s major gas company SK Gas announced on June 15 that it held a ceremony marking the completion of liquefied petroleum gas (LPG) tank terminal that was jointly set up in Banyan terminal at Singapore's Jurong Island with Koninklijke Vopak NV, a global leading gas terminal operator which deals with petroleum, gas and chemical products.
SK Gas holds a 20 percent stake in the joint venture, which was established to construct the tank terminal through its subsidiary SK Gas International (SKGI), and the remaining 80 percent is held by Vopak Terminals Singapore. The facility can store 40,000 tons of LPG. Construction began in May 2014 and took two years to complete.
According to SK Gas, the global LPG production is on the rise due to the shale gas boom based on North America. The prevailing view is that international LPG prices are expected to stabilize in the long term as Middle Eastern LPG will have the price pressure effect due to the increase in North American shale gas production.
Predicting such a trend, the Singaporean government pushed ahead with the project in order to secure LPG as alternative raw materials for naphtha. SK Gas plans to supply more than 100,000 tons of LPG annually to the Singaporean petrochemical companies through the facility by securing the rights of user.