Overview
Singapore has become one of the most important shipping centers in Asia and is one of the world’s top five oil trading and refining hubs. In addition, Singapore is one of the market leaders for floating production, storage and offloading (FPSO) vessel conversions and offshore jack-up rigs. A liquified natural gas (LNG) import terminal is already in operation to enhance Singapore’s position as the premier regional center for the oil and gas industry.
Natural gas accounts for more than 93% of Singapore’s electricity generation. Other sub-sectors contributing to the overall energy sector in Singapore include petrochemicals, electricity infrastructure (including smart grids), renewable energy (such as solar energy on rooftops and reservoirs), and clean energy (such as fuel cells and the use of hydrogen/ammonia which is likely to replace natural gas from 2030 onwards). Singapore is also looking to import electricity from other countries and is considering the use of nuclear energy from 2040 onwards.
However, uncertainties in the global economy due to fluctuating oil prices, geopolitics, trade wars, etc. are affecting new projects coming on stream. As the regional hub for Southeast Asia and with its friendly business environment, there will be opportunities for U.S. exporters in Singapore, especially if there is an uptick in subsea exploration and refinery activities as well as the wider adoption of more renewable/clean energy sources. This is in line with Singapore’s 2050 net zero emissions and decarbonization objectives.
| 2020 | 2021 | 2022 | 2023 estimated | |
| Total Local Production | 35,636 | 50,453 | 68,584 | 29,926 |
| Total Exports | 51,882 | 67,833 | 86,575 | 40,578 |
| Total Imports | 69,553 | 97,053 | 124,044 | 54,504 |
| Imports from the US | 9,818 | 11,465 | 18,753 | 9,193 |
| Total Market Size | 53,307 | 79,673 | 106,053 | 43,852 |
| Exchange Rates | 1.39 | 1.35 | 1.38 | 1.33 |
Units: $ millions
Source: IHS Markit
Leading Sub-Sectors
- Supply of equipment such as boring or sinking machinery for upstream and downstream oil and gas, shipbuilding, marine, mechanical / electrical construction, oxidation additives, and various control systems.
- Renewable energy equipment such as performance monitoring / tracking systems, power optimizers, inverters, grid connectors, waterproof cables for floating solar panels.
- Electrolyzers, electrodes, hydrides, gas generators, purifiers and safety sensors which are used for hydrogen energy and fuel cells.
Opportunities
Singapore is often listed as the leading oil trading hub in Asia (third largest in the world after New York and London), and among the world’s top five oil refining centers. It is also a world leader in the construction of exploration and production platforms and FPSO conversions. According to industry sources and feedback from Singapore companies, the stability and economics of oil prices are very important. In addition, cash flow has an impact on new projects such as construction of new rigs.
Clean and sustainable energy will have more emphasis in Singapore’s drive to achieve at least 2GW of additional peak power capacity in 10-12 years’ time. Peaking power plants represent only 1% of total electricity demand currently, but Singapore’s planned expansion would quadruple the amount of peaking capacity and allow for greater use of intermittent renewable energy sources. According to press reports, Singapore also plans to deploy 200MW of energy storage capacity over the next decade to balance demand fluctuation to ensure system reliability. Singapore is adding floating solar power panels into its energy mix. It is also expected to use increased amounts of clean hydrogen as an energy carrier, which is in line with global objectives to shift towards a low-carbon world.
In land-scarce Singapore, even reservoirs are being used to generate electricity. The Public Utilities Board is currently looking at the feasibility of installing more solar panels on reservoirs and rooftops to generate renewable electricity and reduce carbon emissions. Singapore’s first large-scale floating solar photovoltaic (PV) system has recently been deployed at Tengah Reservoir. In addition, Singapore is looking to import electricity from clean energy sources from countries in the region. Planning is currently underway to import clean hydroelectricity from Lao PDR via a 2,000km transmission corridor across Thailand and Malaysia. A pilot project is also in progress to import solar power from Indonesia via subsea cables. Discussions are underway to develop a floating solar farm in neighboring Indonesia, especially since the cost of solar energy has dropped from 40 US cents per KWh to 10 US cents per KWh over the past 10 years.
Resources
Trade Shows
September 5-8, 2023
OSEA 2024
November 19-21, 2024
Singapore Government Offices
Enterprise Singapore (EnterpriseSG)
U.S. Commercial Service, Singapore Contact
Mr. Chan Y K, Commercial Specialist
Email: Yiukei.Chan@trade.gov