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Singapore ~ Asias Energy Hub
At a Glance
Singapore is the regions premier hub for oil &gas a valuable
sector that contributed almost 5%of Singapores gross domestic
product in 2007.
As Singapore continues to strengthen thecompetitiveness of its
energy industry, thegovernment is looking to develop
innovativelogistics solutions to enhance the synergies ofthe
refining, trading and logistics activities inmeeting the global
energy demand.
Undisputed Oil Hub in Asia
The oil industry has been an integral part ofSingapores economy,
ever since oil tradingactivities started in 1891. It is built on
the threelegs of refining, trading and logistics, whichtoday
contributes close to 5% of SingaporesGDP.
Refining is recognized as the cornerstone of theoil industry.
Export volumes are crucial to pricediscovery of oil products which
roots trading andlogistics activities here. Today, there are
morethan 800* professional oil traders based hereand over 8 million
cubic metres of independentoil storage to support oil trading.
*Source: IE Singapore (2007)
In addition to refining and trading, many oilcompanies site
their regional headquartersactivities in Singapore, including key
decision-making for exploration and production in theirregional
businesses.
Apart from being the most complete industry ofmanufacturing,
services and trade, the oilindustry is a catalyst for the
petrochemicalsindustry, providing advantaged feedstock. Thisfurther
enhances the competitiveness of the oilindustry. Coupled with
excellent logistics andbulk handling capabilities, Singapore
continuesto be one of the critical supply locations forglobal oil
products and chemicals. Other spin-offs from the oil industry
include the oil & gasequipment and oil rig manufacturing
sectors.
Today, Singapore is the undisputed oil hub in
Asia and is one of the worlds top three exportrefining
centres.
sedb.com
Energy
Factsheet 2011
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Key Figures
Singapore is one of the worlds top threeexport refining centres,
accounting for 68.1million tonnes of oil exports in 2007(BP
Statistical Review of World Energy June 2008)
Worlds busiest marine bunkering centreaccounting for 31.5
million tonnes in 2007(
Maritime and Port Authority of Singapore)
Asias leading trading hub (Top 3 in theworld)
Asias oil and oil product pricing centre
Jurong Island - World-
Class Infrastructure
As the centerpiece of the energy and chemicalindustry, Jurong
Island is home to more than 95leading petroleum, petrochemicals and
specialtychemicals companies from all over the world.With its
plug-and-play infrastructure andindustry integration, Jurong Island
is acompetitive location that has attractedinvestments of over S$30
billion.
Singapores Oil Trade
Singapore is the worlds third largest oil and oilproducts
trading hub, behind New York andLondon. The physical oil trade
alone wasUS$375 billion in 20071
.
Currently, Singapore is home to diverse, globaloil traders,
including oil majors (BP, Chevron,ExxonMobil, Shell, Total, etc) as
well asinternational trading houses (Glencore, Itochu,Marubeni,
Vitol, etc).
Widening Our Lead in the
Oil Industry
The increasingly complex energy environmentand an evolving oil
industry presentsSingapores oil sector with an opportunity
tofurther widen its lead. The industry can bebrought to the next
level of growth and capturesmore value through:
1International Enterprise Singapore
Growing Refining
To maintain its share of global refining capacity,Singapore aims
to enhance the complexity ofrefineries and to increase the current
refiningcapacity of 1.3 million barrels per day (bpd).This will be
achieved through upgrading andexpansion of existing refineries, as
well asattracting a greenfield refinery.
Advancing Technology
Singapore hopes to build up its technology baseto enhance
refinery operations, and establishR&D areas in high value
products such aslubricants. Singapore has since achievedheadway in
process optimization and catalystdevelopment to maximise the use of
existingcapital-intensive refinery assets. This is done
inconjunction with R&D efforts at the Institute ofChemical
Engineering and Sciences.
Developing Alternative Energy
Besides developing the oil industry, Singapore iscommitted to
developing alternative energyverticals, including biofuels, solar,
wind and fuelcell technologies. Strong R&D capabilities
arerequired to support industry development inthese areas, which
will also enable Singapore todevelop solutions in response to
regional energyneeds.
Developing Innovative Logist ics
Solutions
All three legs of the oil industry - refining, tradingand
logistics - must grow in tandem for thewhole industry to progress
to the next level.
Given the limited land Singapore has, innovativesolutions
therefore need to be developed toensure that logistics continues to
grow and staycompetitive to support the oil industry.
For example, Singapores storage capacity isset to multiply with
the advent of Jurong RockCavern, a massive underground facility.
Whenphase 1 is completed, it will offer 1.47 millioncubic metres of
space for the storage of crudeoil, condensates and naphtha.
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Creating Strengths in the
Gas Industry
Singapore already has a supply of piped gas,and is looking at
developing new supply ofnatural gas through the building of an
LNGterminal, which is slated to be operational in2012. This will
provide Singapore with greaterenergy security. In addition, gas
could becomean alternative source for petrochemicalsfeedstock, thus
complementing the existingchemical industry.
Leading Industry Players
Leveraging Singapores world-classinfrastructure and excellent
global connectivity,global companies such as Chevron,ExxonMobil,
and Shell have establishedsignificant presence here. These
leadingcompanies help to build a vibrant andcompetitive oil
industry which in turn attractsnew players to Singapore looking
foropportunities in the exciting markets of Asia.
Shell The Netherlands) built Singapores firstrefinery on Pulau
Bukom in 1961. Since then,this integrated site has become Shells
largestrefinery in the world. In July 2006, Shell
announced its plans to proceed with theconstruction of a new
world-scale ethylenecracker on Bukom Island and a new
world-scaleMono-Ethylene Glycol (MEG) plant on JurongIsland.
ExxonMobil US) operates an integratedrefinery located on Pioneer
Road and JurongIsland which has a refining capacity of 605,000bpd.
Integrated with the refinery is a US$2billion world-scale
petrochemical facility with an800,000 tonnes per annum steam
cracker. The
company is currently constructing its 2nd
world-scale petrochemical project in Singapore. Whencompleted,
the site will be ExxonMobils largestintegrated chemical and
refining site.
Singapore Refin ing Company Singapore) isa joint venture between
Chevron and SingaporePetroleum Company. Located on Jurong
Island,SRC operates a refinery that is able to process290,000 bpd
of oil.
Project Highl ights
Neste Oil Finland) is setting up a NExBTLbiorefinery in
Singapore. The S$1.2 billionproject marks Nestes single largest
investmentinto biofuels as well as its first biofuelsinvestment in
Asia. With a refining capacity of
800,000 metric tonnes per annum, it is thelargest facility
worldwide for producing dieselfrom renewable sources. Construction
of theSingapore plant has begun and is targeted tostart up by end
2010. When operational, theplant will employ around 100
people.PowerSeraya Malaysia) is fast growing into afull fledged
integrated energy provider offeringmultiple commodities including
steam, water, oiland gas. The company has invested in an
800-megawatt natural gas-fired co-generation plantto produce
electricity and steam simultaneously.
Slated to be completed by 2010, the new Co-Gen facility is
designed for increased thermalefficiency and will bring about
greaterenvironmental benefits by reducing thecompanys overall
carbon emissions by a further10 per cent.
Sustainable Growth
As Singapore positions itself for the next phaseof growth in the
energy and chemical industry,
we aim to be a model of sustainabledevelopment. To address
climate changeconcerns, Singapore is taking the lead in raisingthe
bar in energy efficiency, emissionmanagement as well as
accelerating thedevelopment of new, sustainable feedstock
andtechnologies for the industry. We activelypromote and support
companies in their plans toimprove energy efficiencies in their
productionand to reduce their carbon footprint.
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About the Singapore Economic Development Board
The Singapore Economic Development Board (EDB) is the lead
government agency for planning andexecuting strategies to enhance
Singapores position as a global business centre. EDB dreams,
designsand delivers solutions that create value for investors and
companies in Singapore. Our mission is tocreate for Singapore,
sustainable economic growth with vibrant business and good job
opportunities.
EDBs Host to Home strategy articulates how we are positioning
Singapore for the future. It is aboutextending Singapore's value
proposition to businesses not just to help them improve their
bottom line,but also to help them grow their top line through
establishing and deepening strategic activities inSingapore to
drive their business, innovation and talent objectives in Asia and
globally.
For more information on how EDB can help in your business and
investment, pleasevisitwww.sedb.com
For more information, please contactMs Tham Yen HsiangHead,
MarketingSingapore Economic Development BoardDID: (65) 6832
6077FAX: (65) 6832 6498Email:[email protected]
http://www.sedb.com/http://www.sedb.com/http://www.sedb.com/mailto:[email protected]:[email protected]:[email protected]:[email protected]://www.sedb.com/
