Welcome Address & Opening Remarks by SMS Low Yen Ling at the Asian Downstream Summit

Excellencies,

Distinguished Guests,

Ladies and Gentlemen,

Good morning, everyone. I am delighted to see many familiar faces here at the Asian Downstream Summit. Your presence is a testament to the oil and gas industry's significance to global energy markets.

2. Since the COVID-19 pandemic, global oil and gas consumption has rebounded strongly. In Asia, demand is projected to grow, driven by economic recovery, rapid urbanisation, and the increasing appetite for petrochemical-based products—ranging from everyday items like plastics, cosmetics, and clothing to advanced materials in electronics and electric vehicles. Even as we talk about sustainability, we convene here every year in conjunction with SIEW because there's remarkable innovation potential in the Asian Downstream and oil and gas markets. Having said that, with this surge in demand, we face a growing challenge: How are we going to meet the rising need for oil and gas while ensuring energy security, and while ensuring that we can continue to advance our net-zero ambitions?

3. Over the years, the Asian Downstream Summit, held in partnership with the Singapore International Energy Week, has established itself as a vital platform for oil and gas industry leaders from all over the world to exchange insights on industry trends, technological innovation and climate change. I am pleased to see this year’s focus on decarbonisation with the introduction of the inaugural Ammonia and Carbon Capture Asia Conference. I think we will all glean a lot of insights from this year's two-day conference. This conference will foster important discussions on alternative low-carbon fuels and carbon capture and storage, which are very critical components in the ongoing energy transition.

Investing in the energy transition

4. The theme of this year’s Summit, “Advancing sustainable energy solutions in Asian petrochemicals and refining industries”, really underscores the importance of a holistic approach to investing in the energy transition. The oil and gas industry possesses deep expertise in carbon management and process engineering. All these capabilities can be leveraged to support low-carbon solutions, such as carbon capture and the production of sustainable fuels.

5. To that end, the public-private partnerships play a vital role in co-creating and catalysing these solutions. As a small, low-lying island state with limited access to alternative energy sources, Singapore is committed to exploring every possible pathway to achieve our 2050 net-zero ambition. However, we recognise that we cannot accomplish this alone. Allow me, on behalf of the Ministry of Trade and Industry and the Energy Market Authority, to share three ways that Singapore plans to collaborate with the private sector to advance low-carbon solutions for Singapore and the region.

6. Firstly, Singapore is partnering with industry on concrete pathfinder projects to build capabilities and to test the viability of new solutions. Earlier this year, we announced a collaboration with S Hub, a consortium comprising Shell and ExxonMobil, to explore the development of a cross-border carbon capture and storage (CCS) project from Singapore. Now this is really groundbreaking – this will include evaluating the technical feasibility of aggregating CO₂ emissions in Singapore and working with international partners to study potential CO₂ storage sites. We certainly need more partnerships like these to accelerate CCS adoption. Both the Intergovernmental Panel on Climate Change and the International Energy Agency have recognised CCS as key to achieving net-zero emissions by the middle of this century. I think this is a space that Asian downstream players can work together to really discover and accomplish the potential.

7. In addition to CCS, Singapore is embarking on a pathfinder project on low- or zero-carbon ammonia for power generation and maritime bunkering. Two consortia have been shortlisted and will begin their pre-FEED studies by the end of this year. The project will help us better understand the potential of hydrogen and its carriers to decarbonise both the power and maritime sectors while we await the development of regional and global supply chains for these low-carbon fuels.

8. Secondly, Singapore is partnering with academia and industry to advance technologically nascent solutions. We want to work on deploying commercially-mature solutions, but at the same time, we need to start working on those nascent solutions as well. Alternative low-carbon fuels continue to face techno-economic challenges that must be resolved before they can be deployed widely. We can’t kick the can down the road, so we have to work on them at the same time as we are commercialising those that are ready to be commercialised. To address this, the Singapore Government has allocated more than S$180 million under the Low Carbon Energy Research Funding Initiative to support research in technologies such as CCS, hydrogen, and ammonia. Many of the projects at the SIEW showcase have been funded by the LCER. Once these R&D projects are completed, we will partner with the industry to test and trial these new solutions in Singapore and the region to gain market traction before scaling up globally.

9. Thirdly, Singapore is setting up a Future Energy Fund, or FEF, with an initial injection of S$5 billion. This fund will support infrastructure investments, including utility-scale low-carbon solutions that are new to Singapore. Why is that necessary? We recognise that the private sector may face investment challenges due to high upfront capital expenditures and various commercial, geopolitical, and technological risks. Therefore, the Government may provide support in these instances through the FEF. This will help catalyse clean energy supply at the scale and speed needed to meet our climate goals.

Conclusion

10. Ladies and gentlemen, the Asian Downstream Summit continues to serve as a vital platform for industry players, like yourself, to discuss the sector’s evolving role in the global energy transition. Through these discussions, I hope we can catalyse new ideas for sustainable energy solutions, including energy efficiency improvements, renewable energy integration and the development of low-carbon products and solutions. Every year I come to this platform to also personally congratulate all the well-deserved winners of this year’s Asian Downstream Awards. Your outstanding performance and efforts have really contributed to the industry’s growth and development.

11. I would like to use this platform to spotlight two winners. Earlier on, I had a wonderful chat with all the winners, and I'm very glad to see that this year, our array of winners are from companies large and small, all races and genders. For the first time, we have a pair of identical twins, Serene and Irene, as winners. They are both giving their all for this important Asian downstream industry and are well-deserved winners. Serene is going to be awarded the best female engineer, while Irene will be crowned the young engineer award. If I remember from my conversation an hour ago, both were living their lives together until they pursued their university degrees. I believe Serene went to University of Toronto, and Irene went to University of PETRONAS. Interestingly, now Serene has come back to serve in academia in the University of PETRONAS, while Irene is serving in the industry as part of the PETRONAS Group. Congratulations to them all.

12. Ladies and gentlemen, while the journey toward an interconnected and sustainable energy future may be complex, I am very convinced and confident that we can work together to transform the industry and strengthen its value proposition. That's why we are here every year, discussing and gleaning insights. The future of our next generation depends on our success. I wish you an enriching time at the Asian Downstream Summit, but also in conjunction with the Singapore International Energy Week.

13. Thank you.