Oil and gas to Singapore
(Last updated: 2 Sep 2013)
Trends and opportunities
The Market
While Singapore does not have any natural oil and gas resources of its own, it has developed a significant oil and gas sector involved in downstream activities.
Singapore is the third largest oil refining centre in the world after Houston and Rotterdam, also the world's third, and Asia’s, largest oil and oil product trading hub.
The city state's total crude oil refining capacity exceeded 1.3 million barrels a day in 2012, with the presence of global players such as ExxonMobil, SPC and Royal Dutch Shell.
The centre of oil and gas activities is Jurong Island - home to more than 95 oil and gas petrochemical and specialty chemical companies from around the world. Here, three giant oil refineries provide feedstock for more than 30 large downstream manufacturing plants.
Singapore’s oil sector is not a standalone industry. Refining has been a catalyst for the chemical industry, as well as creating other sub-sectors such as oil and gas equipment and oil rig manufacturing.
Singapore is home to the world’s two largest oil rig builders, Keppel and Sembcorp, which provide marine and offshore engineering activities in the assembly and maintenance of FPSO conversions, ship repairs, offshore support vessels and jack-up rigs. Approximately 70 per cent of the world's jack-up rigs used for oil exploration and drilling are produced in Singapore. Over the years, companies in Singapore have developed quality ship repair capabilities.
Singapore imports all of its natural gas, used mainly for power generation and petrochemical production, via regional pipelines from Malaysia and Indonesia. There has been a rapid rise in gas use as the government promotes policies aimed at reducing carbon dioxide and sulphur emissions, and ensuring energy security, coupled with positioning the country as a regional hub for an integrated gas pipeline network.
Singapore began building a Liquefied Natural Gas (LNG) import terminal in 2010 to supplement its pipeline imports. The LNG terminal, which started operations on 7 May 2013, will have an initial throughput capacity of 3.5 million tonnes per annum (Mtpa) with two tanks. This capacity will increase to 6Mtpa by the end of 2013 when a third tank, additional jetties and regasification facilities are completed. Plans were announced in October 2012 for a fourth tank and associated regasification facilities to be added to the terminal, to raise its throughput capacity to 9Mtpa. Strategically, Singapore plans to become a leading LNG hub in Asia.
As the world’s second busiest port in terms of total shipping tonnage and the world’s busiest trans-shipment port, Singapore has attracted upstream and downstream oil and gas players to establish their production, procurement and supply chain management base here.
Due to its stable, pro-business environment and central location, many oil and gas companies have established their regional headquarters in Singapore, making key decisions affecting supply chain, regional exploration and production.
Major technology solutions and engineering, procurement and construction (EPC) companies like FMC Technologies, Foster Wheeler, KBR, McDermott, Saipem, Technip and Worley Parsons have made Singapore their base to deliver solutions for both onshore and offshore projects, from subsea to topside construction, to LNG, pipelines and power generation.
Set against the backdrop of a continued worldwide demand for energy, Singapore’s role in the oil and gas sector is expected to continue its growth.
Opportunities
There are opportunities for Australian expertise, especially in technology solutions, engineering, project management and primary supply such as:
- Pipeline technology including pumps, valves and compressors
- Equipment and spares for upstream and downstream oil and gas, shipbuilding, marine, mechanical and electrical construction, oxidation additives, wastewater treatment and control systems
Tariffs, regulations and customs
Industry standards
Singapore has its own standards for various industries and products. For details, companies should contact the relevant government department, Spring Singapore for guidance on standards compliance.
For international procurement offices in Singapore, the preferred industry standards for equipment supply used are UL, ASTM and ISO.
Marketing your products and services
Key Event
OSEA2014 – Biennial trade event targeting at the offshore oil and gas market and its supporting industries
Date: 2-5 December 2014
Venue: Marina Bay Sands, Singapore
Links and Industry Contacts
Energy Market Authority – www.ema.gov.sg
Singapore LNG Corporation – www.slng.com.sg/
Spring Singapore – www.singaporestandardseshop.sg/Product/Home.aspx
Contact details
The Australian Trade Commission – Austrade – is the Australian Government’s trade, investment and education promotion agency.
Through a global network of offices, Austrade assists Australian companies to grow their international business, attracts productive foreign direct investment into Australia and promotes Australia’s education sector internationally.
For more information on how Austrade can assist you, contact us on:
Australia ph: 13 28 78 | Email: info@austrade.gov.au
A list of Austrade offices (in alphabetical order of country) is also available.