Mr Lim Hng Kiang at the Opening Ceremony of Tuas Power’s Tembusu Multi Utilities Complex

SPEECH BY MR LIM HNG KIANG, MINISTER FOR TRADE & INDUSTRY AT THE OPENING CEREMONY OF TUAS POWER’S TEMBUSU MULTI UTILITIES COMPLEX, WEDNESDAY, 27 FEBRUARY 2013, 11 A.M. AT 20 TEMBUSU CRESCENT, JURONG ISLAND

Mr Huang Yongda, Executive Vice President, China Huaneng Group,

Mr Zheng Chao, Minister Counsellor, Chinese Embassy

Distinguished Guests,

Good morning.

It gives me great pleasure to join all of you you today to celebrate the opening of the Tembusu Multi Utilities Complex (TMUC). This is the first new facility which Huaneng has chosen to invest and build in Singapore since its acquisition of Tuas Power. We are delighted that Huaneng has chosen to invest in Jurong Island, and to supply utilities to some of the world’s leading chemical companies.

I was told that this project is also the largest investment by any Chinese company in Singapore. Today’s opening is therefore not just a celebration of Huaneng’s investment, but also a reflection of the deepening economic ties between Singapore and China.

Each time we come together to celebrate the opening of a new chemical plant or utilities complex on Jurong Island, we affirm the success of an unlikely story. With no oil or gas resources and limited land, Singapore was really an improbable location to establish a petrochemical park.

But with a compelling vision and determined execution, Jurong Island was eventually formed. However, this is not just the result of strong government commitment. It is also the trust and investment that companies, such as ExxonMobil, Shell, Mitsui and Sumitomo, have placed in Singapore that have transformed this island into a leading global chemicals site.

Today, the energy and chemicals sector is a pillar of the Singapore economy, contributing about a third of our manufacturing output. This industry has also created good, resilient jobs, and is the highest paying across all manufacturing sectors. Around 75 per cent of the workforce is Singaporean. This reflects the changing profile of the Singapore workforce as it becomes increasingly better qualified and educated. Many of you in the audience, in the course of your work, has helped to turn the unlikely Jurong Island story into a reality.

Tembusu – a new chapter in the Jurong Island story

Today, we mark a new chapter in the Jurong Island story through the development of Tembusu. It is a critical piece of infrastructure that has catalyzed investment decisions by companies such as Lanxess, Dairen, Asahi Kasei and Zeon. These companies are pioneers in Tembusu. They have built upon and strengthened Jurong Island’s existing base through pipeline connections to the crackers and the other facilities on the island.

We believe this is where Jurong Island’s strength lies – integration. With integration, companies are able to obtain feedstock and utilities, as well as supply finished products to other companies co-located with them on the island. In this context, Tuas Power’s centralised utilities facility will strengthen Jurong Island’s integration efforts and its value proposition.

Energy & chemicals continues to be a strong growth sector for Singapore

Jurong Island’s success has also been supported by the rise of Asia in the last decade. With strong population growth and robust economic development, the region is poised to lead consumption and create new business opportunities for companies. The growth of Asia’s demand for chemical products gives us confidence that Singapore’s energy and chemicals sector will continue to be a strong growth sector for Singapore.

However, we must be prepared to transform and adapt to the ever-changing challenges of our time. We are now living in a world that faces increasing resource constraints. A focus on sustainable growth is therefore important for both governments and companies.

Singapore’s efforts to ensure the continued competitiveness and sustainability of Jurong Island

Singapore’ efforts to ensure sustainable growth are exemplified by the Jurong Island version 2.0 (JIv2.0) initiative. Under this initiative, the Economic Development Board works with companies and relevant government agencies on projects that increase both the competitiveness and sustainability of Jurong Island’s ecosystem.

For example, we are working with the industry to introduce alternative feedstock sources, such as liquefied petroleum gas (LPG), to increase the competitiveness of Jurong Island. We are focused on ensuring that these projects are executed in a manner that optimises our resources and are environmentally sustainable. We are also pursuing other initiatives to improve the sustainability of Jurong Island at a systems level. These include the channeling of ‘cold energy’ from liquefied natural gas (LNG); use of waste heat for water-desalination; as well as energy efficiency benchmarking projects.

The Jurong Island story is not without its challenges. Many investors have shared their concerns on certain issues, such as rising energy prices. TMUC helps by providing a competitive utilities option for companies on this part of the island. Companies are also expected to benefit when the Singapore Government-led LNG terminal, being constructed just a few kilometers south of where we stand, starts up in the middle of this year. This development will enable a number of power generation projects, and increase supply and competition in the electricity market.

The government is prepared to work with our companies to find ways to address the challenges that we face. However, the continued success of Jurong Island cannot be determined by the government alone. The Jurong Island story is one that has been and will continue to be written by all our stakeholders. This is the spirit of public-private partnership that help ensure that Jurong Island remains a leading global chemicals hub.

Closing

So ladies and gentlemen, once again, let me extend my heartfelt congratulations to the management and staff of Tuas Power on the grand opening of TMUC. This is a reflection of the successful partnership between Tuas Power, Huaneng and the Singapore Government. I also hope this project will further deepen economic ties between Singapore and China. I wish Tuas Power and Huaneng every success. Thank you.