Speech by MOS Low Yen Ling at the 38th Asia Pacific Petroleum Conference (APPEC)

Mr Saugata Saha, President, S&P Global Commodity Insights,

Distinguished Guests,

Ladies and Gentlemen,

Introduction

1. A very good morning. It is my pleasure to join you here today at the 38^th edition of the Asia Pacific Petroleum Conference (APPEC) 2022. After a two-year hiatus, it is great that APPEC is being held in person today. A very special and warm welcome to all our overseas delegates. I hope you will have the opportunity to explore Singapore and catch some of the F1 Grand Prix action this weekend.

Strengthening Singapore’s position as an oil trading hub through Trade 2030

2. As Asia’s leading oil trading hub and the 3^rd largest globally, Singapore is an important trading hub for the energy sector. As set out in our Trade 2030 strategy, we aim to grow the value of our exports to S$1 trillion and double offshore trade to US$2 trillion by 2030.

3. We will build on the foundation of an established and diverse trading community of over 400 global traders. The presence of top local and global talents, trusted financing and an inter-connected ecosystem of networks make a thriving commodity trading scene in Singapore.

4. We welcome more traders to take advantage of these conducive factors and anchor their activities here.

5. Many companies continue to view Singapore as the commodity trading hub of choice.

a. Colombia´s national oil and gas company, EcoPetrol established their first international trading office in Singapore this year.  As a leading energy player in Latin America, EcoPetrol's presence here strengthens and adds diversity to our trading ecosystem.

b. The vibrant pool of trading companies in Singapore continues to leverage our city-state’s conducive environment to expand their growth. Inpex, a Japanese multinational oil and gas company with a trading office here, intends to make Singapore its key marketing hub for equity crude oil. The company will also expand its LNG trading activities here in the long run.

6. In addition, we seek to boost our energy sector by nurturing and providing targeted support for high-potential local trading companies.

a. Initiatives such as the Scale-up SG programme and Enterprise Leadership for Transformation enable Singapore traders to build new capabilities and strengthen their business models.

b. For instance, Sing Fuels, a homegrown bunker trader, tapped on the Scale-up SG programme to enlarge its reach into global markets. The company recently expanded into the lubricants market by launching Sing Lubes, its flagship lubricants unit. It is also currently exploring plans to launch new trading desks in Biofuels, Fuel Oil, Liquified Petroleum Gas (LPG) and Carbon Management Services.

Capturing new products linked to decarbonisation

7. Another area of opportunity that has emerged for the energy sector is the rise of sustainability and decarbonisation.

a. Last year, we saw the 12-member Oil and Gas Climate Initiative make plans and commitments to cut their carbon and methane emissions by 50 million metric tons annually by 2025. It aims to reach net-zero for their scope 1 and 2 emissions by 2050.

b. Last February, Singapore unveiled our Singapore Green Plan 2030, which set out goals for sustainable development and lower emissions.

8. Besides responding to the immediate challenges of net-zero goals, energy companies will do well by capturing the opportunities emerging from this transition. The world’s energy transition is driving shifts in business models and operations that create new jobs, economic activities and investments.

9. As a leading commodity trading and financial hub, Singapore is well placed to further our efforts in decarbonisation and sustainability. We currently have more than 70 organisations providing a wide range of carbon services here. In addition, we continue to see both local and global players investing heavily in these areas.

a. Earlier this year, Temasek committed an initial sum of $5 billion to establish GenZero, an investment platform company that aims to accelerate decarbonisation globally.

10. Energy companies will need to be agile while seizing new business possibilities and managing the long-term impact of the green transformation at the same time.

11. The Government will continue to support the net-zero transition in various ways.

a. We are working to improve transparency and accountability in the global voluntary carbon market. As many of you would know, Singapore will be anchoring the World Bank-initiated Climate Warehouse initiative. This global market infrastructure connects various carbon credit registries in the world through a blockchain platform. It helps prevent double issuance and claiming of the same carbon credit in multiple registries by different actors.

b. To meet the growth in demand for carbon services, we are nurturing more carbon professionals. Our local universities offer programmes in areas like Environmental Earth Systems Science, Sustainable and Green Finance, Biodiversity Conservation and Nature-Based Climate Solutions.

12. Singapore is also ready to tap into opportunities arising from rising interest in biofuels. Asia looks set to surpass Europe’s biofuel production - thanks to strong domestic policies, growing liquid fuel demand and export-driven production. Singapore serves as an excellent location for the refining and trading of biofuels and their raw components. Besides our strategic location, we have a large growing pool of agri-commodities players that can make good partners for energy companies looking to secure feedstock for biofuel needs.

Partnerships to create novel and innovative energy solutions

13. Opportunities for partnerships and innovations play a vital role in the growth of our energy sector. Innovation is critical, not just to the success of our global energy transition, but also for businesses to stay competitive and relevant. We aim to nurture strong partnerships between global energy companies and our startups to innovate and co-create novel energy solutions.

a. An example is the Abu Dhabi – Singapore Smart Cities Open Innovation Challenge, where four Singapore companies – including two startups – were selected to develop and pilot their solutions for the Abu Dhabi National Oil Company’s (ADNOC) future smart city developments.

b. The annual Singapore Week of Innovation & Technology (SWITCH) brings the global startup and innovation community together to explore new opportunities. This year, a key feature of the event will explore partnerships in the net-zero transition and using technology to decarbonise commodities.

14. We will continue working closely with the industry to provide more platforms and resources to facilitate innovation in the sector.

Conclusion

15. Singapore has come a long way as a vital global energy trading hub. The Government is deeply committed to supporting and growing this sector. As we navigate the global energy transition, we look forward to partnering with energy companies to usher in a new era of innovative and sustainable low-carbon energy solutions.

16. I trust that you will over the next few days, exchange valuable insights, connect and forge fresh and successful partnerships to further your business. I wish you a very fruitful conference. Thank you.