Liquefied natural gas trading may fuel Singapore to be the regional energy hub

More than 400 petroleum and petroleum trading companies are already based in the Lion City.

Mr Teo Eng Cheong, Chief Executive Officer of International Enterprise (IE) Singapore delivered a speech at the World LNG Series: Asia Pacific Summit held last September 20.

According to him, for the growth of Asia’s LNG industry to remain strong, the marketplace needs a
dynamic environment. As Asia’s top oil hub, Singapore is well positioned to also
be the regional hub for LNG.

Mr. Teo Eng Cheong further said:

Today, Singapore is the gateway to key LNG markets. More than 400 petroleum and petroleum trading companies are already based here.

Singapore may not be a major LNG consumer or supplier, but we have seen strong steady growth in our LNG trading sector in recent years.

a. Shell was among the first energy majors to establish LNG marketing and trading activities in Singapore. We have also welcomed other key players including BP, BG Group and Gazprom.

b. BG Group established a LNG marketing and trading presence in Singapore in late 2010. Since then, its Singapore branch has successfully concluded long-term, short-term as well as spot LNG
sales into various Asian markets.

c. Since Gazprom set up its Singapore trading office in late 2009, the local office has secured its first LNG shipments to Japan, South Korea, China, Taiwan, India and Thailand. Gazprom continues to grow its presence in Asia through Singapore by securing a term supply contract to India this year. This formed the basis for the longterm supply of LNG to India.

d. More energy companies have also started new LNG trading businesses here. Just this year, we witnessed new entrants to the cluster, including Gunvor, Vitol, and PetroChina.

We are very encouraged by this progress. It showcases the potential of the LNG industry in playing a greater role in contributing to Singapore’s economy. The LNG industry will have the support of the Singapore government on these and future exciting developments. Many projects that are set to boost the growth of our LNG eco-system are already in the pipeline.

a. Construction of Singapore’s first LNG terminal is on track to commence commercial operations by mid-2013. The terminal will offer a flexible and wide range of services to accommodate the
region’s market developments, including a more active spot trading market.

b. Last month, SLNG commenced construction for the secondary berth of its LNG terminal on Jurong Island. Smaller LNG vessels will be able to berth in Singapore, driving development of an LNG break bulk business and facilitating regional distribution.

LNG trading and related businesses will strengthen Singapore’s position as the regional energy hub. We believe a more robust LNG ecosystem will bring about positive spin-offs for related industries, new technologies and expertise, for a more vibrant and sustainable future.

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