Enterprise Singapore Highlights Singapore’s Growth Opportunities in Energy Sector
…analyses Singapore energy potential in this era of energy transition.
…outlines government efforts to support foreign businesses and companies.
By Ndubuisi Micheal Obineme
Singapore — Enterprise Singapore, the government agency facilitating trade and enterprise development under the Ministry of Trade and Industry, shared the growth opportunities in Singapore in the energy sector.
Despite being a non-oil producer, Singapore has been spotlighted as one of the largest global commodity trade hubs conducting nearly 20 percent of the world’s energy and metals trade. The country is also Asia’s oil price discovery center.
Speaking about this development in an interview with The Energy Republic, Ivan Tan, Director of Trade at Enterprise Singapore, stated that Singapore is Asia’s oil trading hub and the world’s largest transshipment port and bunkering hub.
Tan noted that the key factors driving the growth opportunities in Singapore are based on increased energy demand in the region.
Singapore took deliberate action to grow its commodities trading sector including the energy sector over the past 30 years, which has helped strengthen its status as one of the world’s leading trade hubs, attracting the global business community of commodity traders.
He said, “Singapore has one of the world’s largest container transshipment ports. One in seven of the world’s transshipment containers go through the port of Singapore. A lot of ships choose to bunker in Singapore and it creates a strong demand for marine fuels in the country.
“Singapore also has more than 10 million cubic meters of oil storage. These oil storage tanks enable energy companies to blend and re-export their products.
“Over 150 global companies trading energy products are present in Singapore. These companies include national oil companies, independent traders, and distributors of LPG, among others.
“Foreign companies choose to establish their business in Singapore because it gives them a lot of options in terms of market access.
“It is also easy for companies in Singapore to charter vessels from shipping companies in the country.
“We have over 50 banks that provide commodity financing and credit facilities to trading companies.
“We have a strong talent pool, including a good mix of both international talent and Singaporeans. About 70% of the traders in these commodities companies are locals while the remaining 30% are foreigners.”
Furthermore, he highlighted that the global energy transition agenda has also positioned Singapore as a hotspot for low-carbon fuels trading, noting that trading of biofuels is gaining momentum – both globally and in Singapore. Companies are also looking to trade green ammonia and methanol in Singapore in the future.
He said Singapore is home to a significant number of global energy and multinational companies such as BP, ExxonMobil, and Shell and they have chosen the country as their Asia Pacific hub.
“We have over 40 companies that are also trading LNG in Singapore. As the companies move into decarbonization, they can leverage their base in Singapore to tap into the country’s human capital, financial institutions, and world-leading shipping, and marine sector to support energy transition efforts.
“There will be more trades in low carbon fuels in Singapore. LNG trading has been growing in the past 10 years in the country.
“Singapore is driving the adoption of low carbon fuels to support the energy transition. For instance, Singapore mandates that all flights departing from Singapore are to use sustainable aviation fuel (SAF) from 2026. The Singapore Government has also announced the 1% SAF target from 2026, with plans to raise it to 3-5% by 2030”
“We are actively engaging with companies and discussing with them in doing business and trade on low carbon fuels commodities in Singapore,” he explained.
Speaking about his perspective on energy transition, he underscored the need for carbon market development, advocating for a unified carbon price to accelerate the energy transition agenda.
If the carbon price is increased, according to him, it will accelerate the energy transition globally.
Adding to this, Tan emphasized the need to adopt innovative technologies in utilizing low-carbon fuels such as solar energy, wind, biofuels, methanol, ammonia, etc.
He reaffirmed the government’s commitment to creating an enabling environment to drive technological solutions across the energy value chain, stating that Singapore wants companies to venture into ammonia supply for power generation and bunkering activities.
As part of government efforts, he shared that Singapore’s Energy Market Authority and the Maritime Port Authority have collaborated and issued a request for a proposal on green ammonia for power generation and bunkering.
“Last month, they announced the selection of two consortia for the project – a, comprising both Japanese and Singapore companies. This is an example of how the Singapore government is working on encouraging innovation and creating the enabling environment for companies to explore the opportunities in Singapore’s renewable and low-carbon energy space.”
He expressed Enterprise Singapore’s readiness to work with local and international companies to smoothen the process of their business activities in Singapore’s energy sector.
