JTC, the company behind the construction of the underground oil storage facility Jurong Rock Cavern, says it will retender the project next month.
Currently only one fifth of the project, being built near Singaporean man-made Jurong Island, has a confirmed storage customer – Jurong Aromatics. However the company is optimistic that because of the petrochemical companies located on Jurong Island, there will be a market for the storage.
JTC previously had Vopak and Horizon Terminals interested in the tender process at the end of 2007 but the development was delayed because of the economic global recession.
When Tank Storage magazine contacted the JTC for comment, a spokesperson said: ‘Given the scale and the complexity of the underground caverns project, there had been a shift in timelines for the downstream projects and this affected the scope of work for the tender for an operator in 2007. It was in our plan to reissue the tender before 2013, nearer the completion date of the project. We are now looking at reissuing the tender in 3Q of 2011.’
JTC says it has been speaking with ‘potential customers’ that are likely to confirm their participation ‘closer to the completion of the first phase of the project in 2013’.