Oil and Gas

UPDATE 1-Samsung C&T wins Singapore LNG engineering deal

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SINGAPORE, Feb 8 (Reuters) - South Korean builder Samsung C&T Corp 000830.KS won the contract for engineering, procurement and construction (EPC) of Singapore's first liquefied natural gas terminal, Singapore LNG Corp Pte Ltd (SLNG) said on Monday.

The $1.05-billion LNG terminal will have an initial capacity of 3.5 million tonnes per year (tpy), slightly above past projections of 3.0 million, with provisions to expand it to 6.0 million or more if needed, said Neil McGregor, executive director of SLNG.

The completion of the LNG import terminal project is on track for early 2013, after it was deferred by a year, he told a news conference.

“There were a total of five bidders for the EPC contract. These are all seasoned LNG players,” McGregor said, without indicating the value of the engineering contract.

Foster Wheeler FWLT.O will be the project management consultant, he added.

The Energy Market Authority (EMA) said in 2008 that BG Group Plc BG.L had won a 20-year exclusive contract to supply the Singapore LNG terminal, offering the British gas producer a strong position in the Pacific basin.

The Singapore government said last June it was taking over development of the terminal to avoid more delays due to the credit crunch. The EMA formed SLNG to take over the project from a PowerGas-led consortium, which included GDF Suez GSZ.PA. (Reporting by Seng Li Peng, writing by Ramthan Hussain; Editing by Clarence Fernandez)