Overview

Singapore produces no hydrocarbons and is totally reliant on energy imports. Despite this it is a regional hub for oil refining and the petrochemical industry. Petroleum makes up 90% of the country’s energy imports and refined petroleum products contribute 25% of the country’s total exports. The country is facing increased competition from refining complexes in China and Vietnam, but it wants to retain its market dominance. In light of the new competition, the country aims to cement its position as a regional energy hub with the region’s first open-access LNG terminal.

Singapore’s power generation is 80% gas-fired. Gas is imported from Malaysia and Indonesia via pipeline. To diversify import options, the country invested in an LNG terminal on Jurong Island, which is preparing to receive its first cargo in 2013. The government plans for it to become Asia’s first open-access multi-user terminal allowing companies to trade, store and reload LNG. Concerns have been raised that the terminal may not be open access, as BG Group was awarded the contract to supply the first 3 mtpa of LNG, and no decision has been made on how the excess capacity will be allocated.

There is some expectation that demand for gas to replace expensive oil-fired plants will grow as fuel switching continues. Singapore has signed up to become an intelligent energy system laboratory, where it will encourage and trial new energy technologies. Some are likely to increase demand on the electricity sector, such as electric vehicles, but others, such as smart grids will act to reduce demand. Singapore is considering developing nuclear power over the long term, but the safety and public acceptance issues associated with it are significant.

Profile uploaded: 13/05/2013