Construction on Singapore's first terminal for LNG is expected to start by early 2009.
The Minister of State for Trade and Industry, S Iswaran, said work has to begin soon if it is to be ready by 2012.
The terminal will be built by PowerGas, a subsidiary of Singapore Power, at a cost at least S$1 billion (482 million). As part of Singapore's efforts to diversify energy resources, it will have a capacity of 3 million tonnes of gas a year.
Iswaran said the Energy Market Authority is in the midst of appointing a buyer to procure LNG for the terminal. The main criteria is securing affordable, quality LNG for Singapore.