Oil & Gas
Singapore
Overview
Oil & Gas 2004 2005 2006 (estimated)
Total Market Size 24851 33250 34114
Total Local Production 18486 25795 26051
Total Exports 21555 29160 32181
Total Imports 27920 36615 40244
Imports from the U.S. 706 745 873
Footnote: exchange rates used:
2004: US$1 = S$1.63
2005: US$1 = S$1.66
2006: US$1 = S$1.56
The above statistics are unofficial estimates
Figures are in millions of US$
Singapore’s strategic location at the entrance to the Strait of Malacca has allowed it to become one of the most important shipping centers in Asia. Its port facilities -- the world’s busiest in terms of shipping tonnage -- are key component of Singapore’s prosperity and economic health. This strategic location at the crossroads of the Indian and Pacific Oceans, sound financial system, excellent infrastructure, transparent legal system and skilled workforce have helped Singapore to establish itself as one of the top three global oil trading and refining hubs.
As of January 2006, the Oil and Gas Journal reports that Singapore had a total crude oil refining capacity close to 1.3 million barrels per day (bbl/d). Its three main refineries are ExxonMobil’s 605,000-bbl/d refinery, Royal Dutch/Shell’s 458,000-bbl/d refinery and the Singapore Petroleum Company’s 273,000-bbl/d refinery. ExxonMobil is also one of the biggest producers and suppliers of bunker fuels, and Singapore is one of the world’s premier bunkering centers with more than 25 million metric tons sold in 2005.
Recently, Singapore embarked on a diversification strategy too. The nation currently has plans under discussion to build a liquefied natural gas (LNG) import terminal to reduce dependence on natural gas imports from Indonesia and Malaysia and increase price stability.
Best Products/Services
Singapore’s major oil refineries hold 88 million barrels of storage capacity or 88% of the country’s total storage capacity. Currently, Singapore’s independent storage operators have a total capacity of 24.4 million barrels and this number will grow as companies bring new facilities on-line in response to the shortage of oil storage space in Singapore.
In May 2006, Dutch company Vopak commenced operations at its fourth storage terminal in Singapore, adding 2.1 million barrels of capacity at its current site. German company OilTanking expects to complete an additional facility before the end of 2006, adding 1.5 million barrels of storage capacity. OilTanking anticipates that the new facility will store clean petroleum products and will be linked by pipeline to its existing storage terminal and also to Shell’s Bukom refinery as well. Another new storage project comes from Horizon Terminals, a subsidiary of Dubai-based Emirates National Oil Corporation (ENOC), which expects to finish constructing a 5.3 million barrel storage terminal by the end of 2006, likely adding a second phase in mid-2007.
While this growth in petroleum storage in Singapore is driven by high regional oil demand, some independent analysts have expressed concern that the new terminals may lead to excess capacity. For example, construction has begun on the joint Hin Leong Trading / PetroChina Universal Terminal, which will have a storage capacity of 14.2 million barrels. In April 2006, Singapore also approved the development of storage facilities in underground rock caverns with a potential capacity of up to 20.1 million barrels. These caverns will store petroleum liquids and products such as naptha and gasoil.
Opportunities
Overall exports from the U.S. in this sector for 2006 are estimated to be approximately 20% higher than the previous year. In addition, new opportunities in Singapore offer additional good prospects for U.S. companies.
Companies that can address the needs of engineering firms, construction and contracting services / project consultancies, drilling contractors, offshore platform and rig fabricators and operators, shipbuilding and marine engineering as well as transportation equipment, storage and handling will find opportunities in Singapore. Pipeline technology has also been identified as another growth area for U.S. companies with the increased emphasis on gas in the South East Asian region. U.S. companies with expertise in project management targeting the offshore oil and gas industry, particularly with regard to underwater projects, would find the region attractive. There are also needs for companies with expertise in conducting geographical surveys, navigation and positioning, hydrographic surveys and underwater inspection services, Met ocean measurement, consultancy, information systems and marine forecasting.
Other best prospects include:
· Supply of equipment and spares for upstream and downstream oil and gas, shipbuilding, marine, mechanical and electrical construction, oxidation additives, wastewater treatment and control systems
· Proprietary equipment for deep water application and handling tools, hammer leads, casing tongs and computers
· Oilfield equipment that include mud coolers, instrumentation such as drilling information systems, drilling monitors, mud logging units, mud monitoring systems, torque gauges, pressure gauges, weight indicators, deadline anchors, valves / actuators, performance testing and design control system
· Supply of tubular products such as casings, tubing, carbon steel line pipes, drill pipes, heavy wall pipes, drill collars, drill stem tubular accessories and mechanical alloy steel tubes
Singapore is also experimenting with various forms of alternative energy such as solar, fuel cells, biodiesel and even hydrogen/natural gas hybrid for vehicles for price and environmental reasons.
Other prospective buyers include oil storage terminals, the underground storage cavern plus the LNG terminal that is currently under construction. The first phase of construction of the underground oil storage facility involving access shafts is expected to begin in early 2007 and should be completed within a year.
Resources
Trade Shows
Pumps & Systems Asia 2008
Valves & Piping Asia 2008
Compressors & Systems Asia 2008
July 2008
http://www.hqlink.com/industrial.html
OSEA2008
December 2-5, 2008
Singapore Government Offices
Singapore Economic Development Board (SEDB)
Public Utilities Board
U.S. Commercial Service, Singapore Contact
CHAN Yiu Kei, Commercial Specialist
Email: yiukei.chan@mail.doc.gov