Singapore reaffirms role as global energy hub

Senior Minister of State for Trade and Industry Low Yen Ling noted energy trade through Singapore rose to US$1.67t in 2024

Senior Minister of State (SMS) for Trade and Industry Low Yen Ling said Singapore will continue to strengthen its role as a global energy hub even as it transitions to a low-carbon future.

Speaking at the Asia Pacific Petroleum Conference (APPEC) 2025, she noted that the energy sector is facing “one of its most complex periods in history” and outlined how Singapore is helping companies navigate trade, technology, and transition

SMS Low highlighted the turbulence in global energy markets, citing the Russia-Ukraine war, US tariffs, and shifting demand dynamics.

“Geopolitical tensions have ushered in a new era of volatility,” she said, pointing to oversupply from China and record oil glut projections.

Despite these challenges, she noted that energy trade Singapore rose from $1.94t (US$1.44t) in 2023 to $2.25 (US$1.67t) in 2024, alongside a 5% increase in trading professionals.

Turning to innovation, SMS Low stressed the importance of technology in reshaping the industry. “Traders are incorporating artificial intelligence into forecasting and risk management,” she said.

She pointed to examples such as BHP Group, which established a regional AI hub in Singapore this year, and Four Elements Capital, which developed machine learning tools with AI Singapore’s support.

On the low-carbon transition, SMS Low said Singapore is positioning itself in four growth areas: sustainable products, biofuels, alternative maritime fuels, and carbon trading.

She highlighted Arkema’s new factory on Jurong Island, the world’s largest facility for bio-circular materials, and the Neste sustainable aviation fuel plant, the world’s largest.

With 26 industry bids submitted for ammonia bunkering projects, she noted Singapore’s strong potential as a leader in maritime fuels. She also pointed to the expansion of carbon services, with more than 150 firms now active locally.