Singapore-based developer JTC has announced that phase 1 of underground oil storage Jurong Rock Cavern will finally begin construction by the end of the year, costing around 687 million.
The first underground oil storage facility to be built in South-east Asia looks set to be ready by the first half of 2013, announced JTC.
South Korea's Hyundai Engineering and Construction, which was awarded the building contract by JTC, had encountered delays due to the complexities and design for the project, and has also seen the cost rise from the initial 540 million.
Workers will use a technique that drills and blasts sedimentary rock to build the cavern, which will be used to store liquid hydrocarbons such as crude oil, condensate, naphtha and gas oil.
Together they will contain nine storage galleries, each about nine storeys high and big enough to accommodate the water from more than 64 Olympic-sized swimming pools.
The first phase consists of 8km of tunnels and five caverns.