The state-run Jurong Town Corporation (JTC) in Singapore have announced the signing of a 15-year operator-ship contract with Banyan Caverns Storage Services Pte Ltd, a consortium formed by Vopak Terminals Singapore (45%), Geostock SAS (35%) and JURONG Consultants Pte Ltd (20%) for the first phase of Jurong Rock Caverns (JRC) in Jurong Island, Singapore. The operatorship will be for a period of 15 years and has a contractual value of about $157.3 million (SGD 200 million).
With land scarce in Singapore, but demand growing these caverns are a ground-breaking and innovative solution for oil storage. Located at a depth of 130m beneath Banyan Basin on Jurong Island, the gigantic underground rock caverns provide infrastructural support to manufacturers on Jurong Island, and meet the storage needs for liquid hydrocarbons such as crude oil, condensate, naphtha and gas oil.
The first phase will offer storage for 1.47 million cubic meters, or about nine million barrels, of liquid crude oil, condensate and other produces. Building an equivalent storage volume above ground would require about 60 hectares, or 148 acres, of land, which is scarce in Singapore.
On completion and activation it will then be filled with about nine million barrels of crude oil and other petro products. The newly announced operating consortium will manage, operate and maintain the ancillary and underground facilities including the five oil storage caverns.
With the city-state already being one of the world’s largest bunkering ports and oil trading centres, this development will further strengthen their position.
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