S’pore mulls energy cluster on Tekong; including third LNG terminal and electricity import facilities

SINGAPORE – The military island of Pulau Tekong could potentially host Singapore’s third liquefied natural gas (LNG) terminal, hydrogen-compatible natural gas power plants and facilities for importing electricity.

The Energy Market Authority (EMA) on Oct 6 said it is studying the feasibility of building a 200ha energy infrastructure cluster on the island located off Singapore’s north-eastern coast, to strengthen the nation’s energy security and support its transition to greener energy sources.

This is equivalent to the size of 288 football fields.

EMA said: “Electricity demand in Singapore will grow as our economy continues to expand. While EMA studies the viability of diverse energy pathways, there is a need to plan ahead for new energy infrastructure to meet our long-term power demand.”

Singapore currently relies on imported natural gas, a fossil fuel, for about 93% of its energy needs.

It is currently building its second LNG terminal at Jurong Port. The terminal will be operational by the end of the decade. The Republic’s first LNG terminal began operations on Jurong Island in 2013.

But the country is also looking at alternative energy sources, including the use of hydrogen as a cleaner fuel, and importing electricity directly from its neighbours, to increase its energy security in a climate-friendly way.

To assess the feasibility of building an energy cluster on Pulau Tekong, EMA will appoint a consultant by mid-2027 to develop a proposed masterplan for the cluster. This study is expected to take two years to complete.

The Straits Times’ checks on tender documents published on Oct 5 on government procurement portal GeBiz showed that the study will assess the feasibility of accommodating approximately 6 gigawatts of domestic power generation and 2 gigawatts of electricity imports via three designated sea corridors.

For context, Singapore had the capacity to produce about 13 gigawatts of electricity in the first half of 2025. To date, Singapore has 13 electricity import projects in the works, with a combined capacity of more than 9 gigawatts. The projects cover solar, wind and hydropower from Malaysia, Indonesia, Cambodia, Vietnam and Australia.

The study will also look into accommodating nine to 15 telecommunication submarine cables via three to five designated sea corridors connecting to the area within Pulau Tekong.

EMA will share three development scenarios with the awarded consultant. Each scenario will outline key areas such as the type of energy mix, their capacity and proposed development timelines. The tender also mentions biomass and geothermal power plants.

The three scenarios will be shared only with the awarded consultant.

The consultant has to develop a masterplan for each scenario that identifies the optimal approach to use the 200ha of land for facilities including power plants, an LNG terminal, gas facilities, electricity import facilities, substations and a cable tunnel building, stated tender documents.

The feasibility study should also assess the technical, regulatory, environmental and aviation considerations linked to the proposed energy cluster.

During the National Day Rally in August, Prime Minister Lawrence Wong said that 500ha of land, about the size of Toa Payoh, could be set aside for civilian use on Pulau Tekong, with more reclamation works at the southern end of the island in the pipeline.

He also said studies are under way to see if it is feasible to build undersea tunnels linking the mainland to Pulau Tekong, to make it easier for people to reach the island.

EMA’s chief executive Puah Kok Keong said: “Energy is a critical resource to support Singapore’s continued development and growth. It is vital that we plan ahead for our future energy infrastructure needs.”

If the island’s energy cluster plan materialises, the cluster will play an important role to meet Singapore’s growing energy needs, he added.

Pulau Tekong could even be a second major energy cluster for Singapore, after Jurong Island, said Tan-Soo Jie Sheng, director of the Institute for Environment and Sustainability at the Lee Kuan Yew School of Public Policy.

It can be a multi-fuel energy hub, where some energy sources may have lower use because they serve as a back-up, instead of running all the time.

“But we gain energy resilience in return as we become less dependent on any single fuel, technology, supplier or geographical location,” Tan-Soo said.

Tekong’s location could also be advantageous for electricity imports from Riau Islands in Indonesia, he added.

While a potential third LNG terminal shows that natural gas is expected to remain an important part of Singapore’s energy mix for some time, more LNG import does not necessarily mean more gas consumption, Tan-Soo said.

Higher capacity for natural gas could provide energy security and flexibility, especially in crises, before greener alternatives are available at scale.

“LNG terminals and gas-fired power plants are long-lived investments, so ideally their economics should not depend on Singapore maintaining high levels of gas consumption for decades,” Tan-Soo added.