My apology--
The correct thread should be
Jurong Island underground cavern show case SG Can-Do spirit
''The oil industry accounts for 5 per cent of Singapore’s gross
domestic product.'':EDB
/www.edb.gov.sg/edb/sg/en_uk/index/industry_sectors/energy/facts_and_figures.html
The main purposes of this cavern project ,among other
things,are
1.save 60 ha of surface land in highly sought after Jurong
Island.
2.stragetic reserve and 'normal' storge of oil products.
3.show case CAN DO spirit of Singapore.
4.The under construction First phrase storage capacity is 1.47
million cu meter.
If the 2 nd purase,which is under planning,goes ahead with
another 1.3 million m3
capacity.
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As u can read from Reuter report that cavern are usually for
long term storage of stragetic oil which will not be taken
out
until like emergency situation or shortage.But this cavern allow
for
high turn over of in and out.
JTC Corp on Wednesday awarded the first phase construction
contract to Korean firm Hyundai Engineering and Construction, which
will complete the first two caverns by 2013. -- ST PHOTO: CHEW SENG
KIM
''By Jennifer Tan
SINGAPORE, April 16 (Reuters) - Singapore moved forward with
plans to build a 9.5 million-barrel rock cavern oil storage
facility by awarding on Thursday an S$890 million ($594 million)
building tender to South Korea's Hyundai Engineering (000720.KS:
Quote, Profile, Research).
The first phase of 1.48 million cubic metres (9.5 million
barrels) comprises five caverns on offshore Jurong Island that
could hold crude, naphtha, condensate and gas oil, most likely for
commercial, rather than strategic purposes. The first two caverns
are expected to be operational by early 2011.
A planned second phase could add another 1.3 million cu m of
storage but a decision has not yet been made.
For cost and operational reasons, underground caverns are
often used to hold long-term strategic stocks rather than more
actively traded barrels.
The U.S. government stores its strategic crude reserves in
four underground sites, while South Korea leases out its tanks to
refiners to be used for strategic purposes.
Industry sources say underground caverns, which normally
cost more than an above-ground facility of similar capacity, are
typically used for barrels that remain in-tank for longer periods
and are not traded in and out of tanks rapidly.
"The cavern facility will be used for commercial purposes,
but there will be physical limitations for storage of trading
barrels, particularly those that need to move quickly or be
blended, as transferring of products will be involved," said a
source in the storage business. Continued...
State-owned industrial landlord JTC Corp had said it would
unveil the winning bid for the operator of the Jurong Rock Cavern
project in the April-June quarter, delaying it from end of
February.
A spokeswoman said the results would be unveiled before
end-June.
JUMP IN STORAGE CAPACITY
This is not the first time the decision has been postponed
-- the tenders were first called in late 2007, and the results have
been plagued by months of delays since.
JTC said that more time was needed to study the design and
construction process for the large-scale, complex project, as
safety was a key priority.
Industry sources said bidders for the operation tender
include Dutch oil and chemicals storage firm Royal Vopak NV
(VOPA.AS: Quote, Profile, Research), New York-based engineering and
infrastructure consultants Parsons Brinckerhoff and storage
operator Horizon Terminals Ltd, wholly owned by Emirates National
Oil Company (ENOC).
Vopak already operates landed oil storage tanks next to the
planned facility.
For phase one of the cavern project, there will be about 7.0
km (4.3 miles) of galleries and tunnels.
Once both phases are
completed, the project could raise oil storage capacity in
land-scarce Singapore to nearly 11 million cubic metres or almost
70 million barrels.##
Since end-2005, Singapore has
almost doubled independent oil storage capacities, but all
of it has been leased out, leaving the market short of tanks
despite slowing consumption.
For example, fuel oil storage capacity in Asia , following
the opening of three new terminals with a total of 4-5 million cu m
since end-2006, has increased substantially but has not been
balanced by a similar rise in demand for the residual fuel due to
the economic downturn. (Editing by Ramthan Hussain)'' EOQ
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### lion note---I think she refer 70 million barrels to
independent oil storage
capacities.
Currently,SG total oil storage capacity is about 80 million
barrels.
Pl note there are 2 types of storages providers
1. independent oil storage---they are not attached to oil
refinery or any company.
They just provide oil storage facility for clients by receving a
fee.
2.Oil refiner etc storage----they just provide storge for own
companies
and not lease out facility.
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reference
08 Feb 2007
JTC begins construction of Jurong Rock Cavern at
Jurong Island
http://www.sgprocessindustries.com/Singlenews.aspx?DirID=73&rec_code=331142
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Periscope: A Magazine for Customers of JTC
Corporation: Issue ...
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