[SINGAPORE] The government will help firms navigate the turbulent energy landscape amid manoeuvres by Opec+, continuing geopolitical tensions and energy transition challenges, Senior Minister of State for Trade and Industry Low Yen Ling said on Monday (Sep 8).
The Opec+ decision on Sunday to raise production again by unwinding output cuts, the minister warned, comes on top of already rising output by non-Opec+ countries such as the US and Brazil.
Its decision to prioritise recouping market share adds to mounting concerns that global oil markets could tip into surplus well into 2026, especially as demand growth cools in major economies such as China.
She noted a softening in demand from tariff-induced economic uncertainty and structural changes in key markets like China, with Brent crude recently hitting a four-year low in May 2025 at US$60 per barrel.
Low was speaking at the Asia Pacific Petroleum Conference 2025 (Appec 2025), Asia’s largest annual gathering of energy executives. The 41st edition kicks off in Singapore this week, with over 1,200 delegates from 46 countries.
She added that a structural overcapacity in refining and petrochemicals, especially in East Asia, also placed downward pressure on margins.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
In such an uncertain environment, Singapore remains a global energy trading hub of choice for companies, with energy trade conducted through the Republic at US$1.67 trillion in 2024, up from US$1.44 trillion in 2023, she noted.
Six new firms from the energy and chemicals sector came on board Enterprise Singapore’s Global Trader Programme in 2024, including Yulong Petrochemical which operates a 400,000 barrels-per-day refinery in Shandong, China.
“We continue to build on our key strengths as a trusted, stable and connected hub to anchor trading activities in Singapore,” Low reaffirmed.
SEE ALSO
The Republic is also supporting firms incorporating artificial intelligence (AI) into forecasting and risk management via government programmes.
She highlighted that national programme AI Singapore provides co-funding of up to S$180,000 per project, and access to manpower and AI experts.
On energy transition, she noted that Singapore is well-positioned to play a significant role in the four key growth areas of sustainable products, biofuels, alternative maritime fuels and carbon trading.
“We want to be clear – we will continue to grow the base in Jurong Island,” she highlighted.
In July, special chemical company Arkema opened the world’s largest integrated factory dedicated to biocircular materials on Jurong Island. The firm manufactures polyamide-11, a high performance polymer derived from renewable castor oil, leaving a lower carbon footprint than fossil-based polymers.
Low added that Singapore is also actively growing the biofuels production and trading ecosystem, on top of providing more support for alternative maritime fuels such as ammonia.
It is the home of the world’s largest sustainable aviation fuel production facility operated by Neste, as well as the base of over 250 traders in energy and agri-commodities, including major trading companies such as Wilmar and Olam, which control biofuel feedstocks.
“Singapore’s position as the world’s largest bunkering hub is a unique advantage as we prepare for a multi-fuel future,” said Low, adding that ammonia is expected to account for a substantial share of bunker fuels by 2050.
She highlighted a strong industry response of 26 bids for Energy Market Authority and Maritime Port Authority’s ammonia bunkering request for proposal.
Another critical aspect of energy transition is carbon trading. Singapore is now home to more than 150 firms across the carbon services and trading value chain – double the number from 2021.
“We remain committed to supporting global trading firms and energy players in setting up new carbon credit trading functions,” noted Low.
Appec is hosted annually in Singapore by S&P Global Commodity Insights and supported by Enterprise Singapore. This year’s Appec is taking place from Monday to Wednesday with the theme Asia’s Energy Nexus – navigating trade, technology and transition.
