Singapore is playing a growing role in global energy markets as a major energy-trading hub and the world’s third largest oil refining centre. It is a key financial services centre in Asia and is likely to play an important role in financing energy sector development in Southeast Asia.
Singapore is the region’s second-largest gas importer. The country is expanding its existing LNG importing facility and is seeking to become a major LNG trading hub. Singapore’s relatively small import needs raise questions about how quickly the hub would reach sufficient liquidity to operate efficiently, but it is nonetheless well placed to bring Asian LNG buyers and sellers together and has taken a major step forward with the creation of an LNG price index: the “SLiNG”.
Singapore has made important moves towards liberalising its gas market, providing the basis for more competitive price setting. These moves include creating a well-functioning domestic market for gas and greater transparency. A spot market for local use of gas is being created, including secondary markets for gas consumers, and third party access to facilities such as gas storage is under development. These moves put Singapore ahead of most countries in the Asia-Pacific region and in a good position for a hub-style market to develop.
Singapore’s energy policy have also set strong objectives to 2030, including improving the country’s energy efficiency by 36% by 2030 from 2005 level. Among other measures in support of this target, Singapore introduced energy efficiency standards and labelling for lamps in 2015. The government also plans to increase solar PV capacity and to reduce the country’s greenhouse gas emissions by 16% below BAU level by 2020, with the national emissions peaking in 2030.