Two Singapore ministers recently spoke about the bunkering industry in the republic at two separate conferences and reiterated Singapore’s support towards the development of LNG and bio bunker fuels. 

Manpower Minister and Second Minister for Trade and Industry Dr Tan See Leng said Singapore has developed a strong energy and LNG ecosystem over the years.

“We have established ourselves as a leading LNG trading and bunkering hub in Asia. We have 60 LNG traders operating in Singapore, including the world’s top 10 global energy traders,” Tan said in his speech at the opening ceremony of the Gastech 2023 Conference on Tuesday (5 September). 

“In 2022 alone, about USD 240 billion worth of LNG trades flowed through Singapore, equivalent in value to about 50% of Singapore’s GDP.”

He added Singapore has also built up its infrastructure with Singapore’s LNG terminal can handle up to 9.6 million tonnes per annum of throughput capacity. 

“Our upcoming LNG bunkering network will support the growth of LNG as a marine fuel,” he said.

Tan explained that companies in Singapore have also innovated to deploy new solutions and create new business models that support the entire LNG ecosystem.

“For example, in January this year, Seatrium delivered the first of a series of LNG hybrid tugs for use in Singapore’s waters,” the minister said. 

“The vessel is the first of its kind for operations in Singapore using a pure LNG engine and is supported by an innovative battery power system that allows for emission-free operations during idling and low-speed transit. “

“Seatrium has commissioned the design and the building of the world’s first LNG hybrid tug in 2018 and continues to build its capabilities to ride the global energy transition.”

He concluded that Singapore’s investment in the energy and LNG ecosystem has seen promising results. 

“We are committed to invest further and grow further so that Singapore can better serve the region’s energy needs.”

Meanwhile, Minister of State for Trade and Industry Low Yen Ling said Singapore is well-positioned to support and grow new trade flows for renewable fuels such as biofuels.

She said one of Singapore’s key goals and focus is to grow new trade flows for renewable fuels. 

“The global energy transition and our 2050 net-zero ambition will continue to spur greater demand for greener fuels. Singapore is well poised to facilitate and grow these new flows,” she said in her speech at the Asia Pacific Petroleum Conference (APPEC) 2023 on 4 September. 

“For example, in the area of biofuels, Singapore is located near regional feedstock resources and home to a growing network of counterparties. Over 60 companies, including energy majors such as ExxonMobil and Respol, and ADM and Bunge in the agri-commodities sector, are taking hold of this advantage by trading biofuels from Singapore.”

“Singapore’s efficient refining and processing capabilities, as well as robust maritime infrastructure, allows us to import biofuels for refining and re-export. This synergy presents an opportunity for Singapore to develop strengths in both biofuels processing and trading, and solidify our position as an energy hub.”

Low added Singapore has made good progress in adopting renewable fuels in the aviation and shipping industries.

“In the shipping industry, the Maritime Port Authority of Singapore (MPA) has been taking active steps to facilitate the use of cleaner fuels such as LNG, biofuels, ammonia, hydrogen and methanol to drive decarbonisation efforts. To date, over 140,000 tonnes of biofuels blends have been supplied across more than 90 biofuels bunkering operations,” she added. 

To facilitate the transition to cleaner fuels, Low said the republic is also exploring further opportunities in biofuels, and working on harmonising standards to reduce barriers to the trade of biofuels.

“In consultation with industry and researchers, the MPA has also developed a provisional biofuel standard on the specification of marine biofuel for blends up to 50%. As there is presently no international standard for the quality of biofuels for bunkering, this provisional national standard aims to support the growth of biofuel bunkering and facilitate the adoption of greener fuels to meet our net-zero goals.”

Photo credit: Dr Tan See Leng / Low Yen Ling
Published: 7 September, 2023