Transcript of Speech by Minister of State for Trade and Industry Gan Siow Huang at the Asia Pacific Petroleum Conference (APPEC) 2026

Good morning. It is a pleasure to join you at APPEC 2026. APPEC has been in Singapore for many years. It is the third time we have gathered leaders from across the energy industry here in Singapore. Thank you to S&P Global for bringing them here.

Earlier this year, the effective closure of the Strait of Hormuz delivered a stark reminder of how interconnected global energy markets are. Before the conflict, around 20 million barrels of oil moved through the Strait every day. Between March and May, that fell to just 2.7 million barrels per day. LNG exports were effectively halted. The impact was felt far beyond the Middle East and, certainly, in our part of the world.

The lesson is clear: Resilience is no longer a nice-to-have. It is a strategic necessity. Today, I want to make three points about what resilience means in practice and where Singapore can contribute.

First, diversification must create real optionality. The crisis showed the value of having alternative sources, routes and fuels. Strategic reserves are an important first line of defence. They absorb the initial shock and also buy us time. But reserves are finite. Once the buffer starts running down, the question is: can you actually bring alternative supply in? That means resilience is not simply about just holding onto more inventory. It is about having enough optionality, alternative suppliers, routes, infrastructure and demand-side responses that can be activated quickly.

Singapore applies this principle to our own energy security. We diversify our LNG imports across sources including the United States, Australia and Africa, while around half of our natural gas is piped from the region. We established Singapore GasCo in 2025 to centralise gas procurement for the power sector and also to build a more diversified and resilient gas portfolio. We maintain fuel reserves, retain the ability for power generators to switch from gas to diesel when necessary, and we are expanding our LNG import infrastructure.

But no country can build resilience alone. ASEAN currently sources about 55 per cent of its crude oil imports from the Middle East. The ASEAN Centre for Energy estimates that a closure of Hormuz could directly disrupt 28 per cent of the region's final oil consumption. Regional cooperation therefore matters here, particularly better market information, coordinated emergency arrangements, and the ability to reroute supplies quickly. Having an alternative on paper is not the same as having an alternative that you can deliver.

My second point – diversification has to make commercial sense. This is particularly important for refiners. Asian refiners have spent decades optimising crude procurement around cost, proximity and refinery configuration. Around 60 per cent of Southeast Asia's crude imports have traditionally come from the Middle East, and for good commercial reasons. Gulf producers – they operate at scale. They are relatively close to Asian markets. And many regional refineries are configured to process medium and heavy Gulf crudes.

So diversification does not mean abandoning established supply relationships. Instead, it means creating more options around them. The objective is not to maximise the number of crude grades a refinery can process. It is to maintain a practical portfolio of alternatives that have been tested, understood and also that can be activated quickly when the normal supply is disrupted. Of course we know that flexibility comes at a cost. Alternative crude may involve longer shipping distances, different yields, additional storage or blending, and changes to refinery operations.

The commercial question is therefore not simply, “Can we diversify?” It is: “Where is additional resilience worth paying for?” That is a decision each company must make based on its own assets, markets and risk exposure.

My third point – resilience depends on capabilities across the entire value chain. An alternative source is valuable only if you can deliver it when you need it. That means having the right producer, but also the vessel, insurance, storage, financing, liquidity, infrastructure and risk-management capabilities to execute the transaction, and particularly when markets are volatile.

Now this is where Singapore has an important role to play. Our value is not the size of our domestic market. It is our ability to bring together the capabilities needed to manage increasingly complex energy flows.

Producers and buyers are already using Singapore in this way. ADNOC's trading businesses have established a regional trading base here. Petrobras uses Singapore to serve major markets across Asia and beyond, and has increased exports to Asian refiners. Asian buyers are strengthening their presence too. Earlier this year, India's Bharat Petroleum established its first international trading office here to expand its crude procurement and refined-products trading operations here in Singapore. These are commercial decisions, and in fact, reflect the capabilities and also the trust that companies can count on in Singapore.

On Jurong Island, more than 100 global energy and chemicals companies operate alongside extensive storage and logistics infrastructure. The Jurong Rock Caverns provide around nine million barrels of commercial hydrocarbon storage. Around Singapore, tank farms support bunkering, fuel blending and regional energy trade. And importantly, these physical assets sit alongside traders, financiers, shipowners, refiners, insurers and professional services.

In a crisis, these connections matter. We saw this during the recent disruption. Singapore supplies around 26 per cent of Australia's refined fuel and refines about one-third of New Zealand's fuel. During the disruption, Singapore worked closely with Australia to maintain fuel flows, and also with New Zealand under our Agreement on Trade in Essential Supplies to help keep essential goods and trade flowing.

Now this is what we mean when we talk about Singapore as an energy hub. It is not simply a place where energy is traded. It is a place where companies can create options, manage complexity and also connect supply with demand, even as supply chains are churning.

Let me leave you with one thought. The next energy disruption will not look exactly like the last one. It will be different. It may come from geopolitics, extreme weather, infrastructure failures, cyber attacks or a sudden shift in demand. Who knows? We cannot predict every shock. We can prepare for them. That means diversified sources and routes. It means commercial and operational flexibility. And it also means the capabilities to turn options into physical supply when the markets are under stress.

Governments have a role to play in providing stable policy and investment frameworks. Companies must decide where resilience is worth the cost and build that flexibility into their operations. And the wider energy ecosystem, traders, financiers, shipowners, logistics providers and tech companies, must continue to find better ways to connect supply and demand and manage the risk.

Singapore will continue to play our part by investing in infrastructure, capabilities and partnerships that support evolving energy flows and strengthen regional resilience. And we certainly play a part in retaining our role as a trusted stable hub, something that Calvin [FA1.1]said earlier on. Now resilience has to be built before the crisis, not during the crisis. I’m thankful that APPEC brings people together – people who can make that happen.

Now I encourage all of you to make this conference useful for you to build new connections, test new ideas and create the options that Asia will need when the next crisis hits us. Together, we can build energy markets that are not only more resilient, but also better positioned for the many opportunities ahead. Thank you.