His Excellency Mr Saad Sherida Al-Kaabi, Minister of State for Energy Affairs of Qatar, President and CEO of Qatar Petroleum,
Ladies and Gentlemen,
1. I am pleased to join you today to witness the signing of the Liquefied Natural Gas (LNG) Sales and Purchase Agreement between Pavilion Energy and Qatar Petroleum.
Driving Growth of LNG as a Fuel Source
2. Natural gas is the cleanest form of fossil fuel for energy production. The increasing focus on climate change and energy security has fostered stronger interest in the use of natural gas globally. Companies and countries seeking to lower their carbon emissions are gradually shifting towards using natural gas as their primary fuel of choice. Today, natural gas accounts for 23% of global primary energy demand, and a quarter of total global electricity generation. LNG is especially attractive for countries which face constraints in deploying renewables due to limitations in geography, size, and alternative energy sources.
Role of LNG in Singapore
3. Singapore started our shift towards natural gas early, given our geographical disadvantages. In 2001, 26% of Singapore's electricity was generated using natural gas. This figure has grown to 95% today. Even as Singapore shifts towards other alternative energy sources such as solar energy, natural gas will remain a substantial part of our energy mix in the near future.
Enhance Singapore’s Value Proposition as an LNG trading hub
4. At the same time, we have also been strengthening Singapore’s value proposition as an LNG trading hub, developing our LNG infrastructure, and supporting commercial developments.
5. First, we remain committed in making Singapore an attractive and trusted location for LNG trading and related services. Today, there are more than 50 companies with LNG trading or business development presence located in Singapore. Companies choose Singapore due to our rich ecosystem of players across the LNG value chain, close linkages with the region, and ease of doing business. We can expect our total volume of onshore LNG trades to continue growing as we work with our industry partners and companies to expand their LNG presence locally and globally.
Develop LNG Infrastructure
6. Second, Singapore has been steadily investing in the development of our LNG infrastructure. The Singapore LNG Corporation (SLNG) has expanded significantly the storage capacity at its terminal ahead of demand to support the growth of LNG trading activities and ancillary services such as LNG bunkering. Last year, SLNG launched a Request-for-Proposal (RFP) for an additional storage tank that can be used to further support the growth of LNG trading and ancillary services. The RFP has since closed and SLNG is reviewing the proposals.
Support Commercial Developments
7. We are also supporting various commercial developments. For example, just last month, the Maritime Port Authority of Singapore launched a RFP to issue up to two additional LNG Bunker Supplier Licences. This will support growing demand for LNG bunkering in the Port of Singapore.
8. Despite the many energy investments being delayed or cancelled this year, Singapore is ready and eager to pursue opportunities in a post-Covid-19 economy.
Sales and Purchase Agreement
9. This Sales and Purchase Agreement between Pavilion Energy and Qatar Petroleum is an important and innovative development for the LNG industry. Both companies have pledged to develop a methodology to quantify carbon emissions for LNG cargo based on internationally recognised standards. This will pave the way for increased demand for carbon offset projects to reduce emissions associated with the LNG supply chain. This commitment by Qatar Petroleum, one of the world’s largest LNG exporters, and Pavilion Energy, Singapore’s global Energy Merchant, demonstrates leadership and partnership in creating a sustainable future.
10. Let me conclude by congratulating Pavilion Energy and Qatar Petroleum once again on their partnership. Thank you to all and stay safe.