Sign up
Log in Sign up
Thu 16 Jan 2014, 07:23 GMT

Singapore underground storage operatorship announced


15-year operatorship awarded for Southeast Asia's first subterranean hydrocarbon storage facility.

JTC Corporation (JTC) has awarded the Jurong Rock Caverns (JRC) operatorship to Banyan Caverns Storage Services Pte Ltd. (BCSS), a consortium comprising Vopak Terminals Singapore Pte Ltd. (45%), Geostock SAS (35%) and Jurong Consultants Pte. Ltd. (20%).

The operatorship will be for a period of 15 years and has a contractual value of approximately S$200 million.

The award of the operatorship has been called a key milestone for the first phase of the Jurong Rock Caverns – Southeast Asia and Singapore’s first subterranean hydrocarbon storage facility located at Jurong Island.

The operator will manage, operate and maintain the ancillary and underground facilities at the JRC, but will not handle the sales and marketing of storage services of the JRC. These facilities include the five oil storage caverns, underground tunnels, Mechanical, Electrical and Instrumentation (MEI) equipment such as fire-fighting and ventilation systems, and supporting facilities such as the jetties which will transport the oil to and from the JRC.

The process to select an operator involved a two-stage Request-for-Proposal (RFP). In the first stage of pre-qualification, the RFP respondents were required to submit business proposals and were shortlisted based on criteria such as financial stability, experience, capability and track record. Shortlisted RFP respondents were then invited to submit their proposals in the second stage during which each respondent was then evaluated based on individual merits, with emphasis on the fee as well as technical, commercial and legal propositions.

Commenting on behalf of the consortium, Managing Director of Vopak Terminals Singapore, Mr. Teo Seow Ling, said: "This is a milestone project for Singapore and for the consortium partners, and we are delighted to be awarded the operatorship contract by JTC. Leveraging on the strengths of each partner, we are optimistic that the consortium will bring value to the safe operation of the JRC. Following the award, we will be transferring employees from the consortium companies to fill key positions in BCSS."

This is the second contract which JTC has awarded for the first phase of JRC. In September 2013, JTC awarded the contract for the supply of nitrogen to Air Products Singapore Pte Ltd. The nitrogen is an inert gas and will be used as a blanketing gas for the oil storage caverns for safety purposes. The completion of Phase 1 is scheduled for the second half of 2014.

Illustration of balance scale with cargo ship and penalty block. FuelEU penalties spark contract disputes as first-year compliance costs emerge  

Shipowners and charterers negotiate biofuel handling, payment timing, and multiplier penalties under new regulations.
Marina Bay Sands, Singapore. Singapore tops first global container port ranking by DNV and Menon Economics  

The port leads across all five assessment pillars in inaugural industry report.
Jack Spyros Pringle, Lloyd’s Register. Marine fuel procurement becomes strategic imperative as regulatory pressures mount: LR  

Operators must adopt comprehensive fuel strategies amid supply constraints and compliance costs, says Lloyd's Register.
Xinfu124 ultra-large LNG carrier. Private Chinese shipbuilder plans to deliver eight dual-fuel boxships  

Yangzi Xinfu is fully booked until May 2029 and expected to post annual sales revenue exceeding $1.4 billion.
Østensjø Rederi newbuild tug render. Østensjø Rederi orders methanol-ready tug from Spanish shipyard  

Norwegian operator contracts Astilleros Gondán for vessel with diesel-electric hybrid propulsion system.
Bound4blue worker in safety gear. Bound4blue establishes China production base for wind propulsion systems  

Spanish wind propulsion firm targets Asian shipbuilding market with outsourced manufacturing network.
Alfa Laval and Hanwha Ocean Ecotech sign MoU. Alfa Laval and Hanwha Ocean Ecotech partner on ammonia fuel systems  

Collaboration aims to develop ammonia fuel technology for dual-fuel vessels in the Asian market.
Meg Dowling, Lloyd's Register. Nuclear-powered boxships could deliver $68m annual savings: Lloyd's Register  

Small modular reactors could eliminate fuel costs and carbon penalties while boosting cargo capacity, says report.
Minerva Bunkering and Autoridad Portuaria de Las Palmas (APLP) signing ceremony. Minerva Bunkering extends Las Palmas terminal concession by 15 years  

Bunker supplier adds barge capacity and explores new terminal for energy transition fuels.
Liam Blackmore, Lloyd's Register. Ammonia Energy Association releases gas detection whitepaper with Lloyd's Register input  

Lloyd's Register contributed expertise to new guidance on ammonia detection systems for the maritime sector.




 Recommended